The problem Google (GOOG) is having monetizing its inventory of News Corp.’s (NWS) MySpace pages may have more to do with faulty algorithms for ad serving than it does inherent issues with social networking sites.
Macrovision Solutions (MVSN) announced that News Corp. (NWS) has sold its 19% stake in the company to a group of new and existing institutional investors. The News Corp. position resulted from its 41% stake in Gemstar-TV Guide, which recently merged with Macrovision.
Today at the D6:Conference, the corporate doyens and business leaders were out in full force, both on and off stage. Those who were grilled on stage showed were true to their form–Amazon’s Jeff Bezos charmed everyone with optimism for Kindle, Yahoo’s Jerry Yang was all emotion and patience, and Mark Zuckerberg of Facebook showed that he is still a young fella brimming with big dreams.
News Corp. execs did more than just admit that they weren’t going to hit their revenue goals for MySpace and Fox Interactive Media today. They also fessed up to another open secret: Selling ads on social networks is really difficult. How difficult? Consider that even while MySpace and all of the other FIM sites continued to grow, FIM revenues dropped from $233 million in Q2 to $210 million in Q3; about a third of that total came from a three-year guaranteed deal from Google.
Back a year ago, I wrote a three-part series on the future of the media business. It began as an attempt to think out loud about a topic with which I had become obsessed, and it ended up becoming a manifesto of sorts about conversational media and marketing.
As you may recall, I started that last set of posts with the observation that major media companies–Time Warner, News Corp., CBS–had all fired or parted ways with the longtime managers of their digital assets, opting instead for insiders or traditional media folks with whom they were more comfortable.
Does News Corp. really want a piece of Yahoo? Word leaked out Wednesday that Rupert Murdoch’s News Corp. (owner of this site–Ed.) is looking at taking a stake of 20% or more in Yahoo in exchange for MySpace, some cash and other online properties. An infusion from News Corp., the reasoning goes, could boost Yahoo’s stock price high enough to outstrip Microsoft’s hostile takeover attempt. This is probably as close as Yahoo will get to a white-knight scenario where someone saves the company from the clutches of Microsoft. But a News Corp. deal probably won’t happen. Why?
We hear from two sources that News Corp. and Yahoo are still discussing a possible transaction, designed to create an alternative to a Microsoft takeover. (Or at least the appearance of one). News Corp. [owner of Dow Jones, which owns this site--Ed.] declined to comment, and we don’t have details. We do not believe News Corp. is considering an outright acquisition of Yahoo. News Corp. has repeatedly said it’s not interested in buying Yahoo, and it’s hard to see how the company could afford to compete with Microsoft’s resources.
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