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Boyd compared the shift of white, middle-class kids from the "seedy" Myspace to the "supposedly safer haven" of Facebook, to the "white flight" from American cities; the perception of Myspace eventually drove advertisers away as well.
That resulted in De Wolfe and Anderson gradually losing their status within Murdoch's inner circle of executives, plus De Wolfe's mentor Peter Chernin, the President and COO of News Corp.
In July 2005, in one of the company's first major Internet purchases, Rupert Murdoch's News Corporation (the parent company of Fox Broadcasting and other media enterprises) purchased Myspace for US0 million.
After losing the bidding war for Myspace, Viacom chairman Sumner Redstone stunned the entertainment industry in September 2006 when he fired Tom Freston from the position of CEO.
Within 10 days, the first version of Myspace was ready for launch, implemented using Cold Fusion.
At its peak, when News Corp attempted to merge it with Yahoo! Since then, Myspace has seen a continuing loss of membership.
There are several suggested explanations for its decline, including the fact that it stuck to a "portal strategy" of building an audience around entertainment and music, whereas Facebook and Twitter continually added new features to improve the social-networking experience. Gittelman suggested that the 0 million three-year advertisement deal with Google, while being a short-term cash windfall, was a handicap in the long run.
Redstone told interviewer Charlie Rose that losing My Space had been "humiliating", adding, "My Space was sitting there for the taking for 0 million" (Myspace was sold in 2012 by News Corp for million.) On November 1, 2007, Myspace and Bebo joined the Google-led Open Social alliance, which already included Friendster, Hi5, Linked In, Plaxo, Ning and Six Apart.
Open Social was to promote a common set of standards for software developers to write programs for social networks. Google had been unsuccessful in building its own social networking site Orkut in the U. market and was using the alliance to present a counterweight to Facebook.