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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.

Furthermore, the opening of extravagant new offices around the world was questioned, as rival Facebook did not have similarly expensive expansion plans yet it still attracted international users at a rapid rate.

Myspace is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos. In August 2003, several e Universe employees with Friendster accounts saw potential in its social networking features.

The group decided to mimic the more popular features of the website.

The products division had introduced many features (communication tools such as instant messaging, a classifieds program, a video player, a music player, a virtual karaoke machine, a self-serve advertising platform, profile-editing tools, security systems, privacy filters, and Myspace book lists, among others).

While Facebook focused on creating a platform that allowed outside developers to build new applications, Myspace built everything in-house.

Shawn Gold, Myspace's former head of marketing and content, said "Myspace went too wide and not deep enough in its product development.

Freston's successor as CEO, Philippe Dauman, was quoted as saying "never, ever let another competitor beat us to the trophy".

Redstone told interviewer Charlie Rose that losing My Space had been "humiliating", adding, "My Space was sitting there for the taking for 0 million" (Myspace was sold in 2012 by News Corp for million.) On November 1, 2007, Myspace and Bebo joined the Google-led Open Social alliance, which already included Friendster, Hi5, Linked In, Plaxo, Ning and Six Apart.