One may recall that Rupert Murdoch and his media empire munchkins had purchased MySpace for a whopping $580 million. I am sure that there were dreams of the mountains of cash that would flow into the News Corp. coffers, but those dreams have ended. After only a 9 month stink, the CEO of MySpace has resigned and MySpace continues to slide into oblivion.

In one recent news article it states the following:

Kevin also noted that Murdoch, and every large media company, need to think like startups. Unfortunately that is no longer in the DNA that defines Murdoch. If he thought like a startup, instead of hiring three managers, the company would have hired a strong chief technology officer, who had the vision and the guts to essentially take the living corpse of a social network and send a shock through its system. They needed someone who could think of and build a Spotify based on MySpace Music!

What the company needed was radical transformation. But what it got was infighting, politicking and constant contraction.  At the time Van Natta, Jones and Hirschhorn joined the company it had two things going for it -– the audience and the social graph. There was a time when celebrities used MySpace to stay in touch with their fans. Now they’re all using Twitter.

The audience has started to fritter away, moving to better, more current social environments such as Facebook and Twitter. As for the social graph, I wonder if MySpace really had one. I wouldn’t be surprised if more executives, including those from recently acquired startups such as imeem and iLike, left for greener and more viable pastures.

That seems to sum up eactly what News Corp. is not doing. That is, thinking like a start up company. Even Murdoch’s comments that the iPad is nothing without his content goes to prove that these people haven’t a clue what the Internet is all about.

I would venture a guess that if News Corp. continues on their current path of thinking, that we will see the end of MySpace, and there is a good possibility the end of News Corp. itself.

Comments welcome.