Yesterday's resignation by former CEO Owen Van Natta is not totally surprising, given MySpace's continued losses in advertising, search revenues, and traffic. What is shocking, however, is that the senior leadership at NewsCorp and Fox Interactive remains in positions of power despite the significant mishandling of the scandal involving the discovery of more than 90,000 convicted sex offenders on NewsCorp's flagship social networking site.
MySpace could have taken the steps to notify any parents whose children were contacted by convicted sex offenders, including changing terms of service to allow greater disclosure of sex offenders' conduct. That's what a responsible company with responsible management would have done. To my knowledge, they didn't, presumably afraid of the negative publicity.