Rupert Murdoch and Barry Diller Team to Create MySpace Local

News Corp's MySpace and IAC/InterActive Corp's Citysearch are partnering to launch MySpace Local. The service will bring all the information about CitySearch's 75,000 small businesses into the MySpace platform.

It's designed tap into local communities, allowing MySpace's users to connect into their neighborhood "hub." Then they'll be able to comment on, recommmend, and suggest small businesses to their MySpace friends. The goal is to generate more ad revenue for both CitySearch and MySpace.

MySpace Local is launching with three natural categories: bars, restaurants and "nightlife venues." The business profiles will include everything you'd find on Citysearch, including reviews and photos, and you'll be able to search by location and category. in the future the site plans to include everything from hairdressers to dentists. The idea is that the social web will help people navigate every category Citysearch includes.

MySpace is taking a different approach than Facebook. This announcement brings outside information INTO MySpace's website. In contrast, Facebook seems more interested in bringing its social networks OUTSIDE the site itself. Facebook allows users to share articles or make restaurant recommendations when on other webistes, without ever returning to

Whether it makes more sense to bring information to a social network or a social network to outside information, one thing is clear. Friendships, even online ones, are trusted, which could generate big bucks for the parent companies and advertisers.

Questions? Comments?