Everyone and their mother-in-law now has advice for MySpace on what it should do in the face of rise of Facebook..Bear Stearns analysts Spencer Wang and Shubhashree Mukherjee came out with a research note today on the challenge to News Corp and MySpace. Among other things, it has a section on possible solutions/scenarios for MySpace: “Keeping Myspace ‘closed’ while its greatest competitor becomes increasingly ‘open,’ would make Myspace a ‘walled garden’...how long will it take for Myspace to create a similar platform and how much will it cost? [W]e believe that the development process to create something similar to the Facebook platform could take about nine months.”

Then, “re-creating a similar platform for Myspace will not be easy, will take time, and will likely require significant investment dollars. First, a full suite of API’s needs to be created. Our understanding is that Facebook has created a very comprehensive suite of API’s including a network protocol, a database query language, and a text markup language. This allows for tight integration with the Facebook user experience and database of user and activity information. Beyond turning on API’s, the underlying technology of Myspace would likely need to be enhanced to better support application development, while investment in data warehousing would likely be required as well. Additionally, we would expect increased headcount to support the development of this initiative; Facebook has 65 full time programmers/computer engineers, according to press reports.”

But then, some good news: “from a revenue perspective, we see little downside risk in the near term given how much of Myspace’s advertising inventory remains unmonetized. We are currently projecting $915 million in revenue for FIM in FY08, up from an estimated $602 million in FY07.”

• MySpace Strategy Could Be Shifting To Meet Facebook: Report