June 6, 2009

Fox Interactive drops L.A. office plans

Fox Interactive Media has abandoned plans to occupy 420,000 square feet of office space in Los Angeles County, officials say.

A year after making real estate news by announcing plans to anchor the splashy Horizon at Playa Vista development near Marina Del Rey, Calif., building owner Lincoln Property Co. confirmed to the Los Angeles Times that Fox is instead looking to sublet the space to other possible tenants.

The digital media arm of Rupert Murdoch's News Corp., which owns and operates the MySpace social networking Web site, had signed a 12-year lease, worth approximately $350 million at the Horizon. But since then it has encountered financial problems and is now preparing to lay off a significant number of employees, unnamed sources told the newspaper.

Former AOL executive Jonathan Miller was named chief digital officer of News Corp. only two months ago, and the company said in a statement to the Times that its is assessing all of its operations.

Like any company with new leadership, Fox Interactive Media is reviewing every aspect of our operations, performance and structure, the company said.