Rupert 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.