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Even MySpace’s Founders Have Stopped Using MySpace

Posted in : News

(added few months ago!)

How over is MySpace? So over that even the guys who founded it can’t be bothered to update their profiles. Former CEO Chris DeWolfe “cringes” on the rare occasions when he visits his page on the soon-to-be-sold social networking site, according to Bloomberg Businessweek’s new cover story.

DeWolfe’s MySpace page is private, but his co-founder, Tom Anderson, keeps his page set to public, as he sort of has to: Anderson is was for years automatically the first friend of everyone who joins. His last status update, posted March 1, was “keep up with what’s hot on MySpace.” Apparently there’s not much to keep up with; that’s the only update he’s published this year since 2010*.

Incidentally, MySpace’s redesign last October helped paper over a somewhat awkward issue for Anderson: the fact that his profile continued to list him as five years younger than his actual age, as established by public records. Anderson’s age, real or fictional, isn’t listed on his new page, although you can still see it in the listing that comes up if you search for his name. (See my screen grab above.) That would his fictional age, 35. The real one, 40, is in Businessweek’s story.  Felix Gillette, who wrote the feature, says he searched public records and cross-referenced what he found with Julia Angwin’s book “Stealing MySpace.”

*Update: Originally, this post said Tom Anderson last updated his status on March 1, 2011, but Marty Blake pointed out that Anderson’s last post was actually March 1, 2010. The post itself only includes the month and day, but a little Googling showed that Blake was correct. Thanks for the catch, Marty. (Also, I messed up the dates in the original version of this update. That kind of day.)

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EC: Only Bebo, MySpace protect minors’ privacy by default

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Only two social networking sites (Bebo and MySpace) tested on behalf of the European Commission have default settings to make minors' profiles accessible only to their approved list of contacts and only four sites (Bebo, MySpace, Netlog and SchuelerVZ) ensure minors can be contacted by default by friends only, a European Commission media statement on June 21 2011 said.

EC Only Bebo, MySpace protect minors’ privacy by default

However, out of 14 social networking sites tested, most give minors age-appropriate safety information, respond to requests for help and prevent minors' profiles from being searched through external search engines.
 
The number of minors using social networking sites in the EU is growing - currently 77 per cent of 13 to 16 year olds and 38 per cent of nine to 12 year olds who use the internet.

The results feature in a report by the European Commission on implementation of the "Safer Social Networking Principles for the EU", a self-regulatory agreement brokered by the Commission in 2009 to keep children safe online.
 
As part of the objective set by the Digital Agenda for Europe to enhance trust in the internet, the European Commission has launched a review of the current self-regulatory agreements for the protection of minors online, the statement said.
 
Neelie Kroes, Vice President of the European Commission for the Digital Agenda said: "I am disappointed that most social networking sites are failing to ensure that minors' profiles are accessible only to their approved contacts by default.
 
"I will be urging them to make a clear commitment to remedy this in a revised version of the self-regulatory framework we are currently discussing. This is not only to protect minors from unwanted contacts but also to protect their online reputation," she said.
 
"Youngsters do not fully understand the consequences of disclosing too much of their personal lives online. Education and parental guidance are necessary, but we need to back these up with protection until youngsters can make decisions based on full awareness of the consequences," Kroes said.
 
The possibility of tagging people in pictures, offered by most social networking services, makes it very easy to search for a person's photos online.  Teenagers may face other risks online such as grooming and cyber-bullying, the Commission said.  "Children and teenagers need appropriate safety tools to manage their online identity in a responsible way."
 
The tests, carried out between December 2010 and January 2011, looked at 14 websites: Arto, Bebo, Facebook, Giovani.it, Hyves, Myspace, Nasza-klaza.pl, Netlog, One.lt, Rate.ee, SchülerVZ, IRC Galleria, Tuenti and Zap.lu. Another 9 sites will be tested later this year.

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MySpace 'will sell for at least $100m'

Posted in : News

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Contrary to earlier reports that the media giant was unable to achieve its asking price of $100m, a source close to the acquisition process told The Telegraph, that News Corporation would definitely get $100m for MySpace, if not more and has deliberately dragged its feet and revealed very few company financials in order to achieve the highest figure. “News Corporation has been biding its time in order to get as much money as possible for the asset. It will easily achieve the $100m price tag if not more.

MySpace 'will sell for at least $100m'

“The interested parties, of which there are more than have been reported, are at the due diligence stage and have only in the last week been allowed to see under the hood of MySpace’s figures and business activities. Until now, News Corporation has deliberately restricted information in order to get the price and interest up as high as possible. It’s turned into a dog race between the front runners,” the source said.

News Corporation is expected to sell the asset by or on June 30, 2011, in time for the end of its financial year. However, sources familiar with the deal process expect the procedure to run until “the very last minute”.
Front runners are believed to include: an investor group led by Bobby Kotick, the chief executive of games company Activision Blizzard, Criterion Capital Partners – the private equity company which bought Bebo from AOL last year and social networking site myYearbook.

News Corporation is understood to want to retain a small percentage of the company, while handing over operational control and majority ownership to the successful buyer. A second source, also close to the purchase process, told The Telegraph, that there was still money to be made from advertising via the struggling social network.

“The site still has 40 million active users worldwide. There is definitely still money to be made from better advertising around an improved product. News Corporation just stopped investing in MySpace at a crucial time,” they said. “Lots of companies spend millions trying to attract one million users which they can monetise through adverts. MySpace still has a good audience compared to other sites online – just not compared to Facebook.”MySpace declined to comment.

News Corporation bought MySpace for $580m (£373m) in 2008. The asset was briefly valued at $12bn when News Corp attempted to merge it with Yahoo in 2007. However, it users and value have dropped significantly in the last three years, having failed to compete successfully with Facebook. MySpace now attracts fewer than three million monthly users in the UK, while 30 million UK web users have a Facebook profile which they regularly check.

Earlier this year, MySpace shut down the majority of its international operation, sacking 500 people.
At the end of last year, Chase Carey’s, News Corporation’s chief operating officer, made disparaging comments about the former darling of the social networking space. He described the site as a “problem” and said that a sale or partnership with internet giants such as Yahoo or AOL were two or a number of options under consideration.

Mr Carey, who has previously described MySpace’s losses as “neither acceptable or sustainable”, refused to set a deadline for the social networking site to return to profitability before it push ahead with a sale. “I’m not going to break down [the number of] quarters,” he said. “It’s not years ... we need to deal with this with urgency.”

According to a digital executive close to the company: “MySpace lost $100 million in the first quarter last year. To get it back on track is going to require a massive investment – one which News Corporation it not prepared to make. It has many other priorities to put its money into. So instead, it has been taking costs out of the business while it's still in its hands.”

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Students Win Appeals Over MySpace Speech

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School officials in different districts violated the First Amendment rights of two students when they suspended them for posting raunchy faux profiles of their principals on the social-networking site MySpace, according to a pair of 3rd Circuit opinions decided by the full court. The federal appeals court revisited both cases after three-judge panels came to differing conclusions on each case in February 2010.
    
In western Pennsylvania's Hermitage School District, Justin Layshock used his grandmother's computer to post a phony profile of Hickory High School principal Eric Trosch. Layshock posted fake answers to online surveys and listed Trosch's interests as "Transgender" and "Appreciators of Alcoholic Beverages." He also listed "Steroids International" as a club to which Trosch belonged. Word of the profile spread quickly among students at Hickory High School, and students soon created three other bogus profiles of Trosch on MySpace, each more vulgar and offensive than Layschock's.
    
But Layshock was the only student punished for his profile. He was suspended for 10 days, placed in an alternative program for the rest of the year, banned from extracurricular activities and barred from attending graduation.
    
In central Pennsylvania's Blue Mountain School District, J.S., an eighth grader at Blue Mountain Middle School in Orwigsburg, Pa., was also suspended for 10 days for posting a profile insinuating that her principal, James McGonigle, was a sex addict and pedophile.
    
In the "General Interests" section, J.S. listed "detention, being a tight ass...spending time with my child (who looks like a gorilla)...fucking in my office, hitting on students and their parents."
    
In the "About Me" section, J.S. wrote: "For those who want to be my friend ... I love children, sex (any kind), dogs, long walks on the beach, tv, being a dick head, and last but not least my darling wife who looks like a man (who satisfies my needs)."
    
J.S. allegedly created the profile because she was "mad" at McGonigle for the way he handled a dress-code violation. Both J.S. and Layshock had used photos of their principals from school websites.

The students and their parents sued over the schools' punishments, claiming it violated their constitutional rights, because the offense had taken place off school grounds. Last February, a panel of appellate judges said Layshock's profile "did not result in any substantial disruption," but a different panel said J.S.'s profile "presented a reasonable possibility of a future disruption."The ruling on Layshock's remained the same after a rehearing, and the judges were unanimous. "We have found no authority that would support punishment for creating such a profile unless it results in foreseeable and substantial disruption of school," Chief Judge Theodore McKee wrote.
    
Judge Michael Chagares, who authored the decision on J.S.'s case last year, wrote the lead opinion with regard to that student following the rehearing. The majority acknowledged that J.S.'s profile was puerile, profane and "disturbing," but found it to be "so outrageous that no one took its content seriously."
    
As such, it was unconstitutional to punish J.S. with a 10-day suspension for the "shameful" personal attacks on a school principal and his family, Chagares wrote.
    
A pair of Supreme Court rulings set the standard for the ability of school administrators to stifle student expression. Under Tinker v. Des Moines Independent Community School District, restriction is warranted when speech threatens "substantial disruption of or material interference with school activities." Bethel School District v. Fraser governs student expression that is sufficiently lewd.
    
While J.S.'s profile was lewd, the speech was made outside the school, during nonschool hours, according to the ruling. It furthermore did not cause "substantial disruption, the majority wrote, rejecting the trial court's conclusion that that there was a "connection between the off-campus action and on-campus effect."
    
Extending actions and their effects beyond schoolhouse walls "would vest school officials with dangerously overbroad censorship discretion," Chagares wrote. In a concurring opinion on behalf of four other jurists, Judge D. Brooks Smith advised against basing the origin of speech "on where the speaker was sitting when the speech was originally uttered."
    
"Regardless of its place of origin, speech intentionally directed towards a school is properly considered on-campus speech," Smith wrote. "On the other hand, speech originating off campus does not mutate into on-campus speech simply because it foreseeably makes its way onto campus." J.S.'s speech clearly occurred off campus, the judges found.
    
"J.S. created the MySpace profile at home on a Sunday evening; she did not send the profile to any school employees; and she had no reason to know that it would make its way onto campus," Smith wrote. "In fact, she took steps to limit dissemination of the profile [by only allowing approved MySpace viewers to access it], and the MySpace website is blocked on school computers. If ever speech occurred outside of the school setting, J.S.'s did so."
    
Six dissenting 3rd Circuit judges, however, said the majority was dead wrong, and that it was far from clear that the profile constituted off-campus speech.
    
"The line between 'on-campus' and 'off-campus' speech is not as clear as it once was," Judge D. Michael Fisher wrote. "Today, students commonly carry cell phones with internet capabilities onto school grounds. ... With near-constant student access to social networking sites on and off campus, when offensive and malicious speech is directed at school officials and disseminated online to the student body, it is reasonable to anticipate an impact on the classroom environment."
    
The J.S. decision "allows a student to target a school official and his family with
malicious and unfounded accusations about their character" and "leaves schools defenseless to protect teachers and school officials against such attacks and powerless to discipline students," Fisher wrote.
    
"The majority claims that no one could take the contents of J.S.'s post seriously," the dissent continues. "But stating that the principal of a middle school has sex in his office and is a 'sex addict' who enjoys 'hitting on children and their parents' are serious allegations," and the majority opinion makes light of their potential impact."
    
It was reasonable for administrators to anticipate that the speech would soon disrupt school operations, Fisher added, noting that the accusation of sexual impropriety undermines "the authority of school officials to perform their jobs."
    
It was reasonably foreseeable that the accusations made in the MySpace profile would be shared with parents and teachers," according to the dissent. "McGonigle's character would come under investigation, and his fitness to occupy a position of trust with adolescent children would be questioned. It is inevitable that as more students and parents learned of the profile, the school would experience disruption."
    
"Parents would become concerned that their children were supervised by a man accused of having sex in his office, being a 'sex addict,' and 'hitting on' their children," he added. J.S.'s profile could also constitute "cyberbullying" against teachers that "may cause teachers to leave the school and stop teaching altogether," the judge also wrote.

"The Middle School protected its employees against such a vicious and personal attack, thereby preventing substantial disruption of the classroom environment. I believe our court errs in precluding schools from protecting teachers and officials against such harassment," Fisher found.

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Myspace Music Adds New Features as Sale Nears Close

Posted in : News

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As parent company NewsCorp continues to seek out a buyer for the unit, Myspace continues to build up its product, particularly on the music side of things. Last month, it introduced integration with Facebook, allowing artists to port their Myspace profiles into their Facebook pages. According to data shared by the company, about 18,000 artists have used this feature so far.

This week, it will introduce two other updates. First is a web app that provides more features to fans who use their smartphone browsers to access an artist's profile, rather than via an app. Among the new features is the ability to stream music -- 30-second samples of major label content, full songs from indies.

The difference between the two comes to rights issues and cost. Another feature is the ability to save an individual artist's profile on fans' smartphones with a unique icon, so they can link directly to the profile.
Additionally, Myspace is giving artists new tools to access to the data and analytics around their profile, such as details on content uploaded, recent activity surrounding that content, organize fan comments and so on.
Taken by itself, these are small changes. But looked at in the overall context of the sale effort, they show how Myspace is actively trying to make the Myspace Music division as valuable as possible -- for the purposes of retaining existing users as well as attracting new users and potential bidders.

NewsCorp paid $580 million for Myspace in 2005 and is now reportedly looking to unload the company for around $100 million. According to several press reports, it's having a hard time finding interested buyers at that price, given the money and users that Myspace is losing.

The Wall Street Journal recently reported that NewsCorp is now exploring a strategic partnership, rather than an outright sale-essentially selling only part of the company rather than unloading the entire thing. With millions of bands still relying on their Myspace profiles as their primary online presence, there remains some value there, particularly if combined in some partnership fashion with another music service (perhaps one that could take advantage of the free on-demand streaming Myspace Music offers). According to the WSJ report, this whole process could be wrapped up this month, as early as the end of this week or next.

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Pennsylvania districts lose cases over MySpace parodies

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A federal appeals court ruled on Monday that two Pennsylvania school districts violated the First Amendment by punishing students who created offensive "parody" profiles on MySpace. The ruling did not address the question of when districts can punish students for off-campus speech.

"It would be an unseemly and dangerous precedent to allow the state, in the guise of school authorities, to reach into a child's home and control his/her actions there to the same extent that it can control that child when he/she participates in school-sponsored activities," the 14 judges of the 3rd U.S. Circuit Court of Appeals said in a unanimous decision upholding a lower court ruling in the lawsuit brought by a Mercer County student against Hermitage School District.

Justin Layshock, then 17 and a senior at Hickory High School, created a "profile" of his principal in December 2005 that essentially made fun of his weight. The district moved Layshock from the gifted student program to one for students with behavioral problems, banned him from extracurricular activities and also banned him from his graduation.

The school district subsequently reversed those actions and paid Layshock $10,000 to settle the lawsuit, but still appealed U.S. District Judge Terrence McVerry's 2007 ruling that it violated Layshock's First Amendment rights.

Hermitage schools Superintendent Dan Bell was not available for comment. A spokesman for the Pennsylvania School Boards Association couldn't be reached for comment.

The second case involved an Eastern Pennsylvania student who sued the Blue Mountain School District in Schuylkill County. Her parody used her middle school principal's photo but a fake name and said he was a school principal in Alabama. The profile described him as a pedophile and sex addict.

The more offensive nature of the profile, even though it was less accessible than Layshock's parody, apparently caused an 8-6 split in the judges that still ruled Blue Mountain violated the student's free speech rights.

Vic Walczak, an American Civil Liberties Union attorney who argued both cases before the 3rd Circuit, said the cases make it clear that when a student publishes something offensive on the Internet, the right response is to call in the student and his or her parents.

"In 99 percent of the cases, that's going to do the trick," he said. Arthur Hellman, a constitutional law professor at the University of Pittsburgh, said the rulings don't end the idea that districts can sometimes punish students for comments made off campus, but also don't set a standard for when that might be the case.

"It's obvious the court struggled (with the decisions)," he said. "It took them almost a year after oral arguments."However, the two rulings "are a pretty strong affirmation of students' rights to free speech off campus," Hellman said.

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MySpace's Value Steadily Declines as Facebook's Rises

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Poor MySpace. NewsCorp thought it was getting a bargain when it nabbed MySpace, once the top social networking site, for a paltry $580 million. Now, it looks like Rupert Murdoch has only been able to wrangle one potentially interested buyer for the site. All Things Digital writer Kara Swisher reports that "the main bidder is a dark horse bidding group, which includes Activision Chairman and CEO Bobby Kotick as one of the potential investors." Though MySpace's final selling price is still unknown as of now, Swisher insists that "one thing is certain: It is nowhere near the $100 million that News Corp. reportedly sought."

MySpace's Value Steadily Declines as Facebook's Rises

MySpace's outlook was not always so dismal. In 2006, when MySpace was named the most popular social networking site, it's estimated value rose to $6 billion. While RCB Capital Markets analyst David Banks considered the company worth only $5 billion in 2007, MySpace's perceived heyday was still yet to come. TechCrunch's Michael Arrington calculated that, based on the "most valuable social network's" high page view numbers, it was worth around $20 billion. The next year, surpassed in popularity by Facebook, TechCrunch reevaluated the company's worth and brought it down to $6.5 billion. Finally, in 2010, Business Insider ventured that NewsCorp stood to get anywhere from $500 million to $1.2 billion for MySpace--"with the lower end being LESS than Rupert paid for it, and the upper end being twice what he paid for it (hardly the steal of the century)."
 
At a glance, MySpace's slow decline seems inverse to the success of its greatest competitor, Facebook. In fact, it almost is. We gathered MySpace's estimated values over the past seven years, averaging Business Insider's predicted range in 2010 to get $850 million, into a chart and combined it with one we made earlier this year for Facebook's value changes over the same time period.

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Investor Group Is Front-Runner for Myspace

Posted in : Gossips

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An investor group has emerged as a front-runner in negotiations with News Corp. to take control of Myspace, according to a person familiar with the matter, as the media company rushes to complete a transaction by June 30—the end of its fiscal year.

While News Corp. continues to talk to several potential bidders, negotiations are now focused on a group that would take over the social-media site but leave News Corp. with about a 20% stake, the person said.
Bobby Kotick, chief executive of Activision Blizzard Inc., said he had been approached about being part of the investor group but hasn't yet committed. Any investment by him would be personal and small, and Activision wouldn't be involved, he said.

One person familiar with the matter said Mr. Kotick wouldn't take an active management role. Another person cautioned that a deal between the investor group and News Corp. was a "long shot."
News Corp. owns The Wall Street Journal.

Since News Corp. started accepting bids for the struggling social-media site around April, a number of private-equity firms and other Internet start-ups have expressed interest. Increasingly, News Corp. has focused on deals in which it would retain an ownership stake in the business and hand over operational control.

Some other suitors who have remained interested in recent weeks include private-equity firm Criterion Capital Partners LLC and social networks Tagged Inc. and myYearbook, according to other people familiar with the matter. Former Myspace chief executive Chris DeWolfe and music-video site Vevo, a joint venture between major record labels, had also been in the mix, some other people familiar with the matter said. Talks with Vevo have been stalled for several weeks, though a deal between the two was long considered unlikely, in part because the companies were discussing a complicated arrangement that could have entailed Vevo collaborating with Fox's television arm to create new programming, these people said. Geoff Cook, CEO of myYearbook, declined to comment.

Tagged CEO Greg Tseng said in a statement that the company "would be excited to take MySpace back to its original roots as a place to meet people."Myspace attracted 34.9 million unique U.S. visitors in May, a 48% decline from the same period last year, according to comScore. The News Corp. segment that includes Myspace reported an operating loss of $165 million in the most recent quarter due mostly to lower advertising and search revenues. All Things Digital earlier reported that News Corp. was down to one investing group and that Mr. Kotick may be involved.

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Man who used MySpace for sex with underage girls to be sentenced

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Federal prosecutors will be in court Monday seeking a five-year prison sentence for a Harbor City man charged with using the MySpace social networking site to lure underage girls into having sex with him.

Hugo Galindo Gonzalez, 25, pleaded guilty to a lesser charge of using the Internet to send information about a minor, according to a court document. The original charge carried a mandatory 10-year prison term.

Using a fake name, Gonzalez would pose as a teenager and negotiate with girls he met on MySpace to set up dates with his "older cousin," authorities said. In August 2010, when he was 24, he had sex with a 14-year-old girl he met through the site, Assistant U.S. Atty. Jennie Wang said. The majority of his 2,500 friends MySpace friends were underage girls, she added.

"He's an Internet predator," Wang said. "He would tell them, 'Age is just a number.'"Gonzalez's defense attorney, Richard Nahigian, could not be reached for comment. Wang said Gonzalez worked as a disc jockey and swim instructor. He was identified through a tip from the Palos Verdes Estates police, she said.

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News Corp struggling to sell MySpace

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News Corporation is struggling to find interested buyers for MySpace, with the list of potential bidders down to two, the Australian Financial Review has reported. The media giant was said to have only received a handful of offers for the social networking site, with none at the $US100 million ($A94 million) asking price, the report said.

News Corp was said to be talking to as many as 20 parties in April, the list has now dwindled down to Criterion Capital Partners, along with two private equity firms, and a consortium led by MySpace chief executive Michael Jones, the AFR said.

In a separate report on Bloomberg, News Corp's head of digital media, Jonathan Miller, said the media company would make a final decision on the sale in the next two weeks. “In two weeks, we’ll know something,” Mr Miller told Bloomberg. The report said News Corp was trying to find a way to regain the website's loss of market share to Facebook Inc. News Corp acquired MySpace in 2005 for $US580 million. The social networking site was operating at a $US165 million in the third quarter of fiscal 2011.

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