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MySpace’s Slow Traffic May Cost News Corp. $100 Million

It’s not exactly news that MySpace is losing users, but a serious drop-off in visitors could put the company in jeopardy of losing nearly $100 million.  News Corp., owners of MySpace, made a $900 million deal back in 2006 with Google, to let the world most’s popular search engine be the exclusive search advertiser on MySpace, which at the time was the most used social networking site.  The site is coming dangerously close to  maintaining the minimum traffic level, which could break the deal with Google, and leave MySpace without the $100 million. 

According to Alexa.com, in the past 3 months MySpace’s page-views have dropped 22.75%.  The site is losing its high ranking. While last week the site was the 11th most visited site on the web, however has since dropped to number 12.  At this time last year, MySpace was the 6th most viewed site on the web, but the site has been progressively making its way farther and farther from the top ranks.

“We’re still losing traffic,” said Chase Carey, chief operating officer of News Corp. He added, “We’re not trying to beat Facebook. We’re not trying to beat Twitter.”

MySpace has been making some big news lately, as they are in talks about teaming up with Facebook in order to share video and music content, which would hope to drive users back to the site.  MySpace is also in talks with MSN about sharing entertainment content.  No deals of any kind have been made and it is still not to late yet for MySpace to earn the $100 million, but they will need to do something drastic, fast, to get their hands on the money.