News Corp in talks to launch MySpace China

by Maria Esposito, Brand Republic 01-Dec-06, 14:30

LONDON - News Corporation is a step closer to launching social networking site MySpace in China after entering into talks with potential joint venture partners.

According to a report in The Wall Street Journal, News Corp is discussing a Chinese offshoot of MySpace with International Data Group's Chinese venture arm and the former chief executive of China Netcom Group, Edward Tian.

Reports also suggest that Wendi Deng, wife of News Corp chairman Rupert Murdoch, is likely to join the board of MySpace China.

News Corp first revealed plans for a Chinese version of MySpace last month on the back of strong financial forecasts for 2007. The media giant said that in the financial year to June 30 2007, online revenues could go above $500m.

MySpace China would be News Corp's second foray into the Asian market with the popular website. Last month News Corp, which bought MySpace for around $580 million in 2005, struck a joint venture deal with Softbank Corp to launch a Japanese version of the site.

News Corp has stepped up the international expansion of MySpace this year to combat flagging growth rates in the US. Thanks to the launch of local versions in the UK, Ireland, Australia, Germany and France in 2006, MySpace clocked up 79.8m users worldwide in October.

China could, however, be a hard nut for MySpace to crack. Regulatory restrictions and strong local players have made it difficult for eBay and Google to carve themselves a niche.

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