That $580 million that Rupert Murdoch spent seems a very expensive punt on the social networking game now doesn't it?

However MySpace, once the undisputed king of the online-friend world, no longer sees itself as a social network, with the platform publicly lauding a new "social entertainment" route and thus giving up the contest with the runaway winner Facebook.

And now reports suggest that MySpace will even have to entertain its once arch nemesis, if it is to keep hold of any foothold that it might still have in the online world.

“MySpace are going to install a Facebook Connect button across the site, but no one at the company can admit it publicly yet", said a Silicon Valley-based technology bod, who wished to remain anonymous to The Telegraph.

"They have to. They need the same audience to come to MySpace, that now goes to Facebook, if their re-launch to a social entertainment portal is going to have any traction”.

“MySpace has finally realised that it needs to face the inevitable", said another Telegraph source. "It needs to get out of the way of the oncoming train and just get on board. Installing Facebook Connect is a bold but very necessary move. It will happen imminently".

MySpace reported losses of $156 million in Q3 2010, compared to a loss of $126 million in the same period last year.

Chase Carey, News Corporation’s chief operating officer, said: "We've been clear that MySpace is a problem. The current losses are not acceptable or sustainable".