News Corp. to launch MySpace in Japan with Softbank

News Corp., one of the world's largest media conglomerates on Monday announced its plan to launch a Japanese version of MySpace social networking service under a 50-50 joint venture with Internet and telecoms player Softbank Corp.

The Los Angeles-based social networking Web site MySpace, which was acquired by News Corp. last year for US$580 million, has grown to become one of the most popular destinations on the English-language Internet. The site is now a unit of Fox Interactive Media and has more than 100 million registered members around the world.

The Japanese teens and youngsters already use the English language version of MySpace. Nearly 10 million Japanese currently use social-networking sites. Market leader Mixi Inc. boasts of 6 million registered users.

News Corp. and Japan's Softbank will now set up a 50-50 joint venture, MySpace Japan, to pierce into the Japanese community and fend off the popular Japanese language networking sites such as Mixi.

Myspace.com is already available in national versions for Australia, France, Germany, Ireland and the U.K. After the launch, the Japanese service will become the sixth national version and fourth language version of the service.

As per the reports, MySpace Japan will initially offer services for personal computers but functionality over mobile phones and other personal digital devices will be added over time.

The two parties are expected to make a formal announcement on the deal as early as this week with the joint venture to be operational later this month, the media reports published on Monday stated. News Corp. Chairman and CEO Rupert Murdoch, who is currently visiting Japan, is expected to meet Softbank President Masayoshi Son ahead of the deal.

However, the companies did not offer any comment on the newspaper report.

Softbank is a Tokyo, Japan based leading Japanese telecommunications and media corporation and its operations include Yahoo Japan, number-three cell phone operator Softbank Mobile and the Yahoo BB broadband provider.

MySpace.com venture will mark Softbank's first direct involvement in the sector as it has a stake in a social-networking Web site through its relationship with Yahoo Japan Corp.

The joint venture will start with capital of about US$8.5 million and will allow users to post videos, photos and maintain blogs. Each company will provide half of the US$8.48 million investment to form MySpace Japan, which will operate the new site.

The joint venture will definitely be served as the blow to a chief rival Mixi, which debuted on the Tokyo Stock Exchange in mid-September.

Shares of Mixi plunged 5 percent to 2.14 million yen amid the investors’ concerns that MySpace will attract its subscribers. Similarly, shares of Softbank fell 1.2% to 2,410 yen in Monday trading.