Facebook (FB) May See Challenge from Long-Gone Rival - InvestingChannel

Facebook (FB) May See Challenge from Long-Gone Rival

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Should Facebook (Nasdaq: FB) investors be keeping one eye over their shoulder?

Recently, it was noted that the youth of America are eschewing devices and services their elders enjoy for ones that are not only less enjoyable, but also less “popular,” thus making them more “cool.” One example is Apple’s (Nasdaq: AAPL) iPhone. Kids and tweens don’t want to use the same device their teacher or parent uses.

Enter MySpace.

That’s right, today’s news centers around a revamped MySpace and its bid to draw in users that a maybe a little tired of Facebook.

Having been all-but-forgotten in the mid-naughts, MySpace is placing Justin Timberlake — who has a stake in the company — at the forefront of the initiative. The move makes sense given that MySpace is still largely used by bands to promote content and also that JT has a new album out. It’s like a perfect promotional storm.

Signing up is easy through the URL new.myspace.com, but you can also sign up with Twitter and Facebook.

The new MySpace will have an audio deck on the bottom of the page, with overall emphasis of the site on music and music discovery. There will be a “People” tab for users to connect and receive updates.

One point that is tough to overlook is the stickiness that Facebook has. Even if you and a handful of friends make the change, it would be tough not to at least keep a Facebook account open due to the deep social network you may have already built up. Changing social networks is like quitting smoking or moving to a new city; it’s challenging, exciting, taxing, and rewarding all at the same time.

Still, the next-generation of users who weren’t on MySpace about 10 years ago will certainly see it as an attractive option. Facebook is up 1 percent in early trading Tuesday.

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