Murdoch Hopes To Switch Out MySpace For Yahoo!

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yahoo2.jpgRupert Murdoch has been known to be predictably unpredictable. Recently Murdoch made a proposal to Yahoo that would exchange the newly purchased social networking site MySpace for a quarter of the shares of Yahoo’s stock.

Originally MySpace was bought by News Corp. in 2005 for $580 million, but should Yahoo accept the offer the return would substantial to say the least. With Yahoo’s worth coming in at $37 billion yesterday, a quarter of the shares would be worth roughly $11.1 billion.

Yahoo has been looking to be a player in the social network game and this may provide the right vehicle should they want to give that much control over to News Corp. An attempt was made last year to buy Facebook for $1 billion but the site held out.

Negotiations have been disrupted by the exit of Terry Semel and the return of Jerry Yang. Yang has said he is committed to bringing up the declining portal shares. Ultimately the decision made by Yang on this issue will be very telling of his reign to come.

2 COMMENTS

  1. So the idea is that Yahoo, a company with almost every service available, would give up 1/4 of its stock for MySpace? Wow. That reminds me of when the Minnesota Vikings traded 5 players and future draft picks to the Dallas Cowboys for Hershel Walker in the 80′. For a few games, he was awesome. By the end of the season everybody knew the franchise was doomed for the next 6 years.

  2. MySpace will be gone in a few years. It is the Geocities of Web 2.0. Will Yahoo make the same mistake twice?

    I hope not.

    MySpace is becoming more and more convoluted and it is only a matter of time before the fickle fingers of youth move onto the next big thing.

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