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.
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Comments (1)
Wow, this news is stunning! So many crazy things these past few months! I also oppose this.