From the WSJ:
Rupert Murdoch laid out plans to turn the media company’s recently acquired Web site, MySpace.com, into a full-fledged competitor to portals such as Yahoo Inc. MySpace, a social-networking Web site, soon will add free video downloads, revamp its instant-messaging program and eventually offer Internet calling…Murdoch took a jab at competitors as being outdated. “The portal model is in danger of becoming out of date,” he said. “Young people know exactly what sites they want to go to, and they go there. They don’t have to work their way through Yahoo or MSN’s home page.”
I’ve heard grumblings from MySpace users about Murdoch’s purchase– and about problems with linking to MyTube etc. I bet that Murdoch is smart enough the realize that credibility is the coin of the new realm, and will not move away from the openness that has helped MySpace to grow.