MySpace Looking to Find Space in China

| About: News Corporation (NWS)
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News Corp in early talks with Chinese blogs [Reuters]

Summary: Less than a week ago, News Corp announced MySpace was available in Japan via a joint-venture with Softbank. Now, industry sources are saying Rupert Murdoch, his wife Deng and MySpace's co-founders are in talks with two of the leading blogging sites in China: Bokee and BlogCN. News Corp was not available for comment, but said last Wednesday a China launch is possible this fiscal year if it found the right JV partner. Interestingly however, one source told Reuters he thinks News Corp "wants to do its own thing" and was in talks with the Chinese blog companies to "exchange ideas about how to operate in China." Both Bokee and BlogCN have attracted venture capital totaling millions of dollars. China has the second largest number of Internet users at 120 million, with approximately half that number being bloggers, but the blogging services market is already crowded, intensely competitive, and faces government monitoring.
Related links: Commentary: IRG Chinese Tech Stocks Weekly Update (scroll down/search "MySpace" and "China Mobile" -- News Corp and China Mobile announced an alliance over the weekend to a launch a wireless music service in China) • The Web 2.0 Bubble: A Hypothetical Short-Sellers ListNews Corp. Reports Mostly Strong QuarterMySpace Goes to JapanChina's New Obsession with Blogs and How Companies Can BenefitMySpace Growth Tailing Off As Site Population Reaches Critical MassComScore Traffic Data for Sept.: YouTube Continues To ExplodeYouTube vs. MySpace Growth: No ContestNews Corp: Pay Attention to the MySpace FactorEncouraging Stupidity: Analysts Up in Arms Over 'Outrageous' MySpace Valuation. Earnings conference call transcript: News Corp F1Q07.
Potentially impacted stocks and ETFs: News Corp (NASDAQ:NWS) • Competitors: Google (NASDAQ:GOOG) and Yahoo! (YHOO) already have blogging services in China. Google also owns YouTube, which competes with MySpace for net traffic, but at the same time Google provides search and advertising services to News Corp's MySpace and other Fox websites.

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