Viacom entering social networking service market

Viacom entering social networking service market

Viacom owns the famous youth brand MTV and are now aiming to make an entry into the social networking service market this year. The move has become necessary as their competitor News Corporation recently acquired MySpace, which is hugely popular amongst the teenagers in the United States.

This means that Viacom would have to fight the competition now on the internet to connect to the audiences worldwide. Tom Freston, chief executive officer of Viacom said in a statement: “We don’t believe the game is over. Really, it’s just started.”

He was talking at the ongoing Reuters Global Technology, Media, and Telecoms Summit in New York. The company is now talking with several Internet social networking businesses though they have not made it clear on whether they would be looking towards acquiring an existing startup.

Viacom also made it clear that they never placed a bid for when News Corporation was trying to acquire it. They said that the asking price did not justify the returns from this startup.

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