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Myspace quickly gained popularity among teenage and young adult social groups.
In February 2005, De Wolfe held talks with Mark Zuckerberg over acquiring Facebook but De Wolfe rejected Zuckerberg's million asking price.
Danah Boyd, a senior researcher at Microsoft Research, noted of social networking websites that Myspace and others were a very peculiar business—one in which companies might serially rise, fall, and disappear, as "Influential peers pull others in on the climb up—and signal to flee when it's time to get out".
The volatility of social networks was exemplified in 2006 when Connecticut Attorney General Richard Blumenthal launched an investigation into children's exposure to pornography on Myspace; the resulting media frenzy and Myspace's inability to build an effective spam filter gave the site a reputation as a "vortex of perversion".
The project was overseen by Brad Greenspan (e Universe's Founder, Chairman, CEO), who managed Chris De Wolfe (My Space's starting CEO), Josh Berman, Tom Anderson (My Space's starting president), and a team of programmers and resources provided by e Universe. The company held contests to see who could sign up the most users.
and move it to the head of the pack of social networking websites.
That resulted in De Wolfe and Anderson gradually losing their status within Murdoch's inner circle of executives, plus De Wolfe's mentor Peter Chernin, the President and COO of News Corp.
We went with a lot of products that were shallow and not the best products in the world".Around that time, specialized social media companies such as Twitter formed and began targeting Myspace users, while Facebook rolled out communication tools which were seen as safe in comparison to Myspace.Boyd compared the shift of white, middle-class kids from the "seedy" Myspace to the "supposedly safer haven" of Facebook, to the "white flight" from American cities; the perception of Myspace eventually drove advertisers away as well.Former AOL executive Jonathan Miller, who joined News Corp in charge of the digital media business, was in the job for three weeks when he shuffled Myspace's executive team in April 2009.Myspace President Tom Anderson stepped down while Chris De Wolfe was replaced as Myspace CEO by former Facebook COO Owen Van Natta. meeting in March 2009 over the direction of Myspace was reportedly the catalyst for that management shakeup, with the Google search deal about to expire, the departure of key personnel (Myspace's COO, SVP of engineering, and SVP of strategy) to form a startup.
Myspace could not experiment with its own site without forfeiting revenue, while rival Facebook was rolling out a new clean site design.