Restructuring At Friendster

friendster logoAccording to this post by Jeremy Zawodny, some big changes ahead at social networking site Friendster. CEO Scott Sassa might be out, layoffs and more VC funding. If he is out, it is a huge public failing of their supposed Hollywood/media/social networking nexus they thought they could use and develop a business model around.
Update: Rob Hof at Business Week has confirmed Jeremy’s report and then some: Scott Sassa is out as president and CEO, replaced by Taek Kwon, evp-product and technology at Citysearch.com. Also, Friendster laid off five people from its 55-person staff. Friendster spokesperson Carleen LeVasseur told Hof that Sassa led Friendster to profitability but that the company decided to emphasize software development to enhance the user experience — Kwon’s expertise. From Hof: “I don’t think it’s hopeless. But man, it’s tough to restore lost cool, and I’m not sure even the whizziest technology will do the trick.”

Jeff Clavier: “Social networking is now an integral part of the fabric of Internet applications, but offers limited value in its own right – with a very quick decay of one’s interest.”

Related:

Turning Up The B-Detector on Friendster

Fox Promotes Stacked on Friendster Blogs

Industry Moves: Friendster Hires Former NBC Exec as CEO; Declares Media Ambitions