MySpace a Losing Space for News Corp.

NEW YORK (TheStreet) -- The problem with trying to chase after what the cool kids are doing is that what the cool kids are doing will surely change before you can adopt it -- and then they'll make fun of you for being lame.

Such is the case with global media behemoth News Corp.(NWS.A Quote), which announced Wednesday that its fourth-quarter net loss hit $203 million, notably as a result of a write down in the value of formerly cool MySpace.

The net loss of 8 cents per share compares with a net profit of $1.1 billion, or 43 cents per share, in the same quarter a year ago. The results included $450 million in impairment charges and $180 million in restructuring expenses at Fox Interactive Media, which includes MySpace.

News Corp. purchased MySpace for $580 million in 2005. Since then, the site has been significantly outclassed in the sector, as "Facebook" has become all but a verb, while MySpace has become all but an afterthought -- and a revenue dog. Reflecting the social networking site's stalled growth, News Corp. recently shuffled its leadership team, ousting co-founder Chris DeWolfe in favor of Owen Van Natta, a former executive at Facebook.

In a classic example of chasing the competition by impersonating the competition, Van Natta has, since then, engaged in a series of layoffs and restructurings that have mirrored the foundation of Facebook.

"The past year has been the most difficult in recent history, and our 2009 financial performance clearly reflects the weak economic environment that we confronted throughout the year," Murdoch said in the press release announcing the quarterly figures. "We streamlined all our businesses and continue to do so, at the same time adjusting to the revolutionary changes taking place throughout the media industry."

"Nearly all our businesses have improved market share," Murdoch continued. "Particular progress has been made in cable network programming. I am certain that News Corporation is poised to profit, and deliver strong returns, as the economy rebounds."