DeWolfe to step down as MySpace chief [FT]
By Matthew Garrahan in Los Angeles
Published: April 23 2009 01:25 | Last updated: April 23 2009 01:25
Chris DeWolfe, one of the co-founders of MySpace, is to step down as chief executive of the popular social networking site just weeks after telling the Financial Times that he was “very happy” with the company.
His departure as chief executive follows the recent appointment of Jonathan Miller, the former chief executive of AOL, as head of digital operations at News Corporation.
News Corp said Mr DeWolfe would not be renewing his contract, which is up for renewal in October, and would be “stepping down in the near future”.
The contract of Tom Anderson, MySpace’s president, who co-founded the company with Mr DeWolfe, is also up for renewal in October. However, Mr Miller said he was in discussions with Mr Anderson about a new role.
It is unclear why the two MySpace founders are moving on. However, they are among the best paid employees at News Corp with hefty contracts worth an estimated $15m a year each. With advertising revenues at the company hit by the economic slump it was unlikely they would have been offered contracts of comparable value.
At the end of February the FT learned that the two would not be renewing their contacts. However, Mr DeWolfe insisted in an interview that he and Mr Anderson had no such plans.
“We love the people, the product, and we believe in the future of the company,” he said at the time. “We are not thinking of leaving…our heads are down and completely focused on building a profitable, scalable business.”
As he announced his departure – and apparent change of heart – on Wednesday, Mr DeWolfe said working at MySpace had been “one of the best experiences of my life”. News Corp said he would continue to be a “strategic adviser” to the company.
News Corp acquired MySpace for $580m in 2005. The site enjoyed meteoric growth but has faced growing competition from rival Facebook, which recently passed the 200m user mark.
MySpace failed to meet a $1bn revenue target last year and while revenues were up in the first half of the company’s current fiscal year growth has stalled since the onset of the recession.
Rupert Murdoch, News Corp’s chairman, moved to address growth in the company’s digital operations when he hired Mr Miller at the beginning of the month. The appointment came amid a broader reshuffling of News Corp’s top team, which was triggered by the announcement that Peter Chernin, Mr Murdoch’s long-time second in command, was to leave the group. |
