How is the social networking race heating up? Which site will end up on top. This week we have seen some big happenings. There seems to be a new Twitter story featuring some innovative application about every 2-3 hours these days. YouTube unveiled plans this week to allow real-time video sharing and chat at the site, adding another dimension to the social arena. And finally, the disappointing earnings of MySpace’s music streaming business was not the only alarming news there. The company has announced that co-founder and CEO Chris DeWolfe will be leaving, and that co-founder Tom Anderson will stepping into a less demanding role.

Several sites have posted an internal memo sent out to all Fox Interactive employees from News Corp’s Digital Media CEO Jonathan Miller. The rumor mill is churning out possible replacements, but no new CEO has been announced yet. Here is the memo:

To FIM Employees:

I am writing to share the news that MySpace CEO Chris DeWolfe will be stepping down from his executive role in the near future. He has agreed to serve as a strategic advisor to the Company and will remain on the board of MySpace China.

In addition, I am currently in discussions with MySpace President Tom Anderson regarding his role within the organization.

I want to take this opportunity to thank them both for their incredible contributions to the Company, and for pioneering one of the greatest social media revolutions of our time. I wish Chris nothing but the best in any new endeavors and, like many in this industry, am eager to witness his next innovations.

I understand the importance of having a dynamic, inspiring and innovative management team, and am dedicated to ensuring that MySpace continues to benefit from the highest levels of passion and enthusiasm.

I also want to thank everyone across FIM for giving me the opportunity to work with all of you. With MySpace, IGN, Photobucket, Fox Audience Network and our Digital Publishing Group, this is an exciting collective of properties and I’m enthusiastic about the opportunities that lie ahead.

I hope to meet and work closely with many of you over the weeks and months to come.

Best regards,
Jonathan Miller