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Myspace President Tom Anderson stepped down while Chris De Wolfe was replaced as Myspace CEO by former Facebook COO Owen Van Natta. meeting in March 2009 over the direction of Myspace was reportedly the catalyst for that management shakeup, with the Google search deal about to expire, the departure of key personnel (Myspace's COO, SVP of engineering, and SVP of strategy) to form a startup.

Furthermore, the opening of extravagant new offices around the world was questioned, as rival Facebook did not have similarly expensive expansion plans yet it still attracted international users at a rapid rate.

Some employees of Myspace, including De Wolfe and Berman, were able to purchase equity in the property before My Space and its parent company e Universe (now renamed Intermix Media) was bought.

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.

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.

By late 2007 and into 2008, Myspace was considered the leading social networking site, and consistently beat out main competitor Facebook in traffic.

While Facebook focused on creating a platform that allowed outside developers to build new applications, Myspace built everything in-house.

Shawn Gold, Myspace's former head of marketing and content, said "Myspace went too wide and not deep enough in its product development.

The group decided to mimic the more popular features of the website.

However, the features were often buggy and slow as there was insufficient testing, measuring, and iterating.

Danah Boyd, a senior researcher at Microsoft Research, noted of social networking websites that Myspace and others were a very peculiar business—one in which companies might serially rise, fall, and disappear, as "Influential peers pull others in on the climb up—and signal to flee when it's time to get out".

That deal required Myspace to place even more ads on its already heavily advertised space, which made the site slow, more difficult to use, and less flexible.

Myspace could not experiment with its own site without forfeiting revenue, while rival Facebook was rolling out a new clean site design.

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