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article imageMurdoch admits Myspace was a 'huge mistake' for News Corp

By Leigh Goessl     Oct 22, 2011 in Business
Los Angeles - News Corp held their annual shareholders' meeting yesterday and reportedly sparks flew. This past year has not been a good one for the corporation, due to scandals and financial disasters.
Reportedly the meeting was a tense one with Rupert Murdoch and sons withstanding much criticism. The Guardian reported, "close to a quarter" of News Corp shareholders sought to vote Murdoch and his two sons, James and Lachlan, along with several other directors out.
One of this year's disasters for News Corp was the sale of the floundering Myspace. While the company had owned the social network since 2005 when it was purchased during a time the company was the reigning king in the social market. That is, until a little startup named Facebook came along; Myspace was never able to recover from Facebook's success, and its leadership was not able to recapture the magic and former glory the network had once enjoyed.
The purchase of Myspace was a "huge mistake", according to Murdoch's statements yesterday.
According to the Associated Press, News Corp's chief executive said the social network was mismanaged "in every possible way" once it was acquired for $580 million.
"We paid $600 million," Murdoch said. "We could have sold it for $6 billion a month later."
"We then proceeded to mismanage it in every possible way," he said, adding that "all of the people [at News Corp] concerned with it are no longer with the company."
Instead the company held onto the floundering network and sold it this past June for a mere $35 million to Specific Media, a loss of over $500 million. The future of Myspace is still a bit uncertain, but Specific Media currently has big plans for a revamp, with Justin Timberlake at the helm, Digital Journal recently reported.
Additionally this past year it had been discovered News Corp's News of the World was involved in a hacking scandal.
Subsequently this discovery led to hearings, as reported by Digital Journal this past July and the highly successful News of the World was shut down.
Based on the events this year, a good percentage of voting shareholders wanted current News Corp leadership ousted, but being Murdoch and supporters control a good share of the company's interest at 40 percent, it was anticipated not much would change in terms of leadership. Bloomberg confirmed today leadership remains although exact votes are not available to the public.
While Murdoch has survived this round, in the wake of the hacking scandals, News Corp still has a long way to go as the company tries to 'right the wrongs' in regards to the atrocious behavior of the now defunct News of the World.
Although where Myspace is concerned, from the sounds of it, Murdoch fully intends to move on from this financial disaster.
More about Myspace, Rupert Murdoch, Social media, News Corp
 
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