Web 2.0 Featured Article

MySpace CEO Steps Down After Less Than A Year on the Job

By Erin Harrison, Senior Editor

Citing differing “personal and professional” priorities, New Corporation announced late Wednesday that Owen Van Natta will step down from his position as MySpace CEO, effective immediately. He will be replaced by newly-elevated co-Presidents Mike Jones and Jason Hirschhorn.

 

All three executives joined MySpace in April 2009, with Jones and Hirschhorn previously serving as Chief Operating Officer and Chief Product Officer, respectively, according to MySpace officials. Van Natta is stepping down as CEO of “struggling” social networking site MySpace after less than a year on the job, the Associated Press (News - Alert) reported.

 

Eighteen months ago, social networking site Facebook (News - Alert) eclipsed MySpace in overall users. Facebook currently has 250 million to MySpace’s 130 million. MySpace remains the largest social network in the United States, but membership is slowing and even falling. MySpace said it had 70 million unique U.S. visitors in January, up from 64 million in November, citing data from research group comScore (News - Alert) Inc.

 

“Owen took on an incredible challenge in working to refocus and revitalize MySpace, and the business has shown very positive signs recently as a result of his dedicated work,” said Jon Miller, chairman and CEO of digital media for News Corporation. “However, in talking to Owen about his priorities both personally and professionally going forward, we both agreed that it was best for him to step down at this time.  I want to thank Owen for all of his efforts.”

 

Miller continued, “Mike and Jason have demonstrated true leadership in their operational and product guidance, respectively, and I have the utmost confidence in both of them to lead MySpace into its next chapter.”

 

Jones and Hirschhorn, who will each report to Miller, said in a joint statement:

 

“We joined MySpace last April with very a specific set of goals in mind, and are anxious to continue working together to make those goals a reality. This business is now pointed in the right direction, and we have a great team of employees that will continue to push MySpace closer to its potential as the place where people go to be discovered and to discover great content.”

 

In June 2009, one week after confirming that it plans to lay off about 30 percent of its workforce, MySpace announced that it was pursuing a plan to cut costs by eliminating 300 international positions and shuttering up to four offices located outside of the United States, TMCnet reported.

 

“During his tenure, MySpace cut 720 jobs, reducing its work force by about 40 percent, and broke the lease on bigger office space in west Los Angeles that it no longer needed – moves that resulted in about $180 million in restructuring charges but set up the site for better profits,” the Associated Press reported on Wednesday.

Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's (News - Alert) print publications, including "Internet Telephony", "Customer Interaction Solutions", "Unified Communications" and "NGN" magazines. Erin also oversees production of TMCnet's weekly iPhone (News - Alert) e-Newsletter. To read more of Erin's articles, please visit her columnist page.

Edited by Erin Harrison