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Murdoch’s MySpace.com takes on Yahoo! and MSN

Murdoch’s MySpace.com takes on Yahoo! and MSN

News Corporation is planning a major overhaul of its community website MySpace.com, which Rupert Murdoch plans to turn into a major rival to Yahoo! and Microsoft's MSN. At the same time, Murdoch said that the internet businesses owned by News Corp were on track to generate revenues of up to $400m (£266m) in 2007. The New Corp chairman, who was speaking at a Citigroup investors meeting in Arizona, also suggested that despite being a late entrant to the web market, it would be looking to shake things up, taking a different route to established rivals, which Murdoch said were behind the times. "The portal model is in danger of becoming out of date. Young people know exactly what sites they want to go to, and they go there. They don't have to work their way through Yahoo! or MSN's homepage." MySpace is to be fitted out with a host of new features including free video downloads, improved instant messaging and internet telephone calls, which are already available on the major portal sites of Yahoo! and MSN. Developments at MySpace come after it emerged that News Corp had been accused of censoring posts at the online community website, which it bought last year for $580m. According to reports, subscribers to MySpace discovered that if they mention a rival site called YouTube, then the words were automatically deleted from posts. It also says that attempts to download video images from YouTube led to blank screens. News Corp has since rectified the situation. As well as adding new features to MySpace, News Corp said it was looking at search-engine technology, sparking speculation that it might do a deal with one of the major search firms, possibly Google.

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