Myspace for Yahoo!
June 20, 2007 by Pablo Palatnik
The Times has just announced a stunning rumor (at least it is for now and I hope it stays that way), News Corp., which owns Myspace, offered Yahoo! their social networking monster, Myspace, for a 25% steak in Yahoo!
The Times reports that these two companies have been in talks before Terry Semel stepped down as CEO yesterday. This would be a huge deal for News Corp. Myspace is nowhere near traffic wise than Myspace and a 25% steak in Yahoo would equal to $12.3 billion dollars as Yahoo! is estimated to be worth $37 billion dollars at the moment.
News Corp. bought Myspace in the summer of 2005 for $580 million dollars. $12.3 billion after 2 years? A good return on investment for News Corp?…I don’t have to answer that.
I completely oppose the idea of News Corp, Foxs’ parent company as well, having such control of the second largest used search engine. I really ask myself, is Yahoo really doing that bad? 25% of the engine for Myspace? Even with the swap, News Corp. will still have somewhat control of Myspace since it will have a 25% share of Yahoo!.
Great Deal for News Corp if they pull this one.
We’ll see how this one plays out.
Random Posts
Comments (1)












Wow, this news is stunning! So many crazy things these past few months! I also oppose this.