News Corp. Net Income Drops $1.7 Billion Since Last Year, Of Which MySpace Caused $203 Million

Posted Aug 7, 2009

Earlier this week News Corporation announced their annual net income.  News Corporation owns The Wall Street Journal, FOX, and The New York Post, and MySpace.  In 2008, the company reported a net income of $5.4 billion.  This year the company announced adjusted operating income at $3.6 billion, or a $1.7 billion dollar decline from the year before.

Part of the reasons for the loss was because of $680 million in charges made at FOX Interactive Media (FIM).  FIM is the News Corp. unit that runs MySpace, Photobucket, and other web services.  MySpace itself had a net loss of $203 million.

“These declines were primarily due to lower contributions from Fox Interactive Media (FIM) and NDS. The decline in FIM operating results was driven by lower advertising revenues at MySpace and increased costs associated with the launch of MySpace Music,” wrote News Corporation in a press release.

That would explain why MySpace had major layoffs and recently shuffled around executives.  This past April, Facebook co-founder Owen Van Natta was hired by MySpace to become their CEO.

[via NYT]