MySpace Gives Up In Race With Facebook

MySpace has officially waved the white flag in its battle with Facebook. The company’s new CEO—ex-Facebook exec Chris DeWolfe—tells the Financial Times that the company now sees itself as more of a music and entertainment hub than a social networking site. “Facebook is not our competition,” he says. “We’re very focused on a different space.”

MySpace has seen its share of social networking traffic tumble to 30% as of September, down from 66% just a year earlier. Though it’s still one of the web’s most visited sites, boasting 100 million unique users, it is well behind Facebook’s 300 million. So rather than compare itself, MySpace is looking to capitalize on its popularity with musicians—it’s just inked a deal with iTunes allowing users to buy songs without leaving the site. (More MySpace stories.)