News Corp.'s MySpace deal starting to pay off

Steve Rosenbush

There were plenty of skeptics when News Corp. announced its $580 million acquisition of MySpace back in 2005. The valuation appeared high, for the time. And critics said that News Corp. was sure to kill the popular Web site, unless it died of its own accord.

Nearly two years later, MySpace is growing at a furious pace. It's the core of a $500 million digital division Fox Interactive Media. News Corp. is likely to take another step toward monetizing that asset by allowing MySpace users to embed Fox video on their home pages, creating a huge amount of new ad inventory, one industry executive tells me. The full story is here.