WPP Takes Stake in Chinese MySpace

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WPP has invested in the Chinese venture capital firm which is spearheading the launch of MySpace in China. The marketing services group headed by Sir Martin Sorrell has ploughed an undisclosed sum into China Broadband Capital Partners, a Beijing-based investor in the technology and media sectors.

In 2006 WPP Group said it has joined with online community builder LiveWorld to form a joint venture dedicated to developing social networking applications for clients. LiveWorld builds social networking applications for clients like eBay, HBO and Mini. WPP acquired roughly $2 million in stock in LiveWorld.

WPP is certainly making a concerted effort to get into the social networking game. They are smart to get involved on several fronts as opposed to a giant partnership.

Go look at the LiveWorld website and then go look at the dating site platforms, notice the difference? There is so much money to be made private labeling social networking software, these white label companies spend a lot of money on marketing, developers and technology. They have to, because the due diligence major corporations perform is immense and popular social nets tax servers and infrastructure much more than dating sites.