Continuing the bloodletting after MySpace, which has laid off more than 700 people both in the US and internationally in the past month, FIM’s Photobucket laid off about one-third of its staff of about 120, according to Kara Swisher. The photo- and video-hosting service was bought for $250 million by News Corp.
IGN videogame and the entertainment unit had the other layoffs, but they were apparently minimal. The restructuring of FIM, and MySpace and what’s the future is still in question.
“It’s tough to value social networking sites because no clear business model has emerged yet,” Robert Jackman, co-head of the technology, media and telecommunications mergers team at Jefferies & Co, told Reuters. “Murdoch and others still have time to make this work. Any significant M&A in the space would be somewhat of a bet” until people figure out how to sustainably make money off the millions of users.