News Corp Internet division to reorganize

By Kenneth Li

NEW YORK (Reuters) - News Corp's (NWSa.N: Quote, Profile, Research, Stock Buzz) Fox Interactive Media Internet division could fall short of its fiscal 2008 revenue target of $1 billion, as it reorganizes its divisions to better exploit the online advertising market.

The News Corp division that oversees the world's largest social network MySpace said in a statement it plans to officially launch its long-awaited online advertising network.

The FIM Audience Network will consolidate its newly developed advertising technologies such as its "hyper-targeting" tools that tailors advertisements to Web surfer's interest.

"I am confident that we are moving in the right direction to secure our long-term success, and I am certain that we have the right leadership team in place to take us there," FIM Chief Peter Levinsohn said in a memo to employees obtained by Reuters.

Regarding its revenue targets, Fox Interactive Media said in a statement, "We expect to be close to our target."

The memo partially confirms a report on technology blog TechCrunch, which reported late on Thursday that the division would miss its annual revenue target of about $1 billion and likely come in at around $900 million.

Fox Interactive Media said Adam Bain, executive vice president of production and technology at FIM, will be named president of FIM Audience Network.

The restructuring will also see the departure of Chief Revenue Officer Michael Barrett, a former Time Warner Inc (TWX.N: Quote, Profile, Research, Stock Buzz) executive, the company said.