News Corp. warns it may kill MySpace

News Corp. may shut down its MySpace operations if the business doesn’t turn around within the next several months, Chase Carey, the company’s chief operating officer, said last week.

After a $70 million drop in revenue and plummeting traffic, the executive said the results were “not acceptable or sustainable” and implied the site will be shut down if it isn’t fixed. A timetable wasn’t given, but MySpace’s timeframe would be measured “in quarters, not in years,” Carey said in a conference call with reporters.

MySpace has been in decline for years as Facebook has superseded it in popularity. The site has traditionally focused on music. MySpace’s streaming and per-track download service had at one time been thought big enough to challenge iTunes. However, it failed to get traction.

Just last month, MySpace previewed a major overhaul of its site that would both give it a more modern, polished look and focus more on music, games and TV than pure social networking.