How Facebook is killing MySpace — MSN Money

MSN Money:

For the past year, News Corp.’s (NWSnewsmsgs) flagship Internet property has watched its fortunes steadily fade. Not long ago, MySpace was the dominant player in the online social-media space, but rivals have been stealing away users. Just two months ago the site lost its title as the world’s largest social-networking Web site to rival Facebook.

MySpace also experienced a painful loss of revenue in the most recent quarter, and analysts expect more bad news. At this rate, the “place for friends” could soon find itself virtually friendless and barren.

“They are in a really deep hole right now,” said Debra Aho Williamson, a senior analyst at eMarketer, an online advertising research firm. “It wasn’t a good quarter for MySpace, and what you have seen since then is a snowball effect.”

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