Net Effect: MySpace continues to pay off

August 18, 2007 When Rupert Murdoch's News Corp. acquired MySpace nearly two years ago, the social networking site's explosive user growth made many competitors envious. Now that it has grown up more, and Facebook has become the latest networking darling, some industry observers have wondered whether MySpace's audience gains have peeked and how that would affect its overall financial picture. News Corp. brass and Wall Street folks said MySpace has managed to boost its advertising rates and thereby profitability, making it less dependent on big future audience growth.

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