The CEO of News Corporation (NYSE:NWS) subsidiary MySpace China, Luo Chuan has resigned. This is slightly one year after Chuan brought the social network to China. Chuan used to be a Microsoft China executive.
Given the current market conditions in Asia, it is rather difficult to retain executives in some of the top technology companies based in countries like India and China. Yahoo! Inc. (NASDAQ:YHOO) and eBay Inc. (NASDAQ:EBAY) are struggling with similar problems.
There is a social network race happening in China with Xiaonei being one of the dominant players. Xiaonei is a replica of Facebook, but has more funding than the company that Mark Zuckerberg founded. Xiaonei has $430 million in funding. MySpace itself was acquired for $150 million more than what Xiaonei is funded with.
Wendi Murdoch, wife of News Corporation Chairman and CEO of News Corp Rupert Murdoch is also heavvily involved with MySpace China. Deng is the Director and Chief Strategist for the holding company that licenses MySpace technology. Prior to her involvement with MySpace China, she was VP of News Corp’s STAR TV in Hong Kong.
Once the P2 team finds out what Chuan is up to, we’ll be sure to report it.