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Initially, the emergence of Facebook did little to diminish Myspace's popularity; at the time, Facebook was targeted only at college students.

At its peak, when News Corp attempted to merge it with Yahoo! Since then, Myspace has seen a continuing loss of membership, and there are several suggestions for its demise, 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.

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.

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.

Redstone believed that the failure to acquire My Space contributed to the 20% drop in Viacom's stock price in 2006 up to the date of Freston's ouster.

Myspace is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos. In August 2003, several e Universe employees with Friendster accounts saw potential in its social networking features.

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

In February 2005, De Wolfe held talks with Mark Zuckerberg over acquiring Facebook but De Wolfe rejected Zuckerberg's million asking price.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.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.

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