News Corp. to swap MySpace for stake in Yahoo
 

Rupert Murdoch's News Corp. is discussing swapping social networking Web site MySpace for a 25 percent stake in Yahoo Inc., The Times newspaper reported Wednesday.

The Times, which is owned by News Corp., said its parent was looking for exposure in a larger Internet-based business such as Yahoo.

News Corp. spent $580 million to buy MySpace in 2005.

Corporate officials at News Corp. and Yahoo Inc., both based in the United States, were not available for comment in the early hours of Wednesday morning.

Based on Tuesday's closing share price, Yahoo was worth $37 billion.

Yahoo has been losing out to Google Inc., whose shares have increased six-fold in value since 2004 while Yahoo's share price has dipped.

Profit at Yahoo fell 11 percent in the first quarter, the company said Monday, and it warned that second-quarter results may be at the low end of expectations.

The downturn has fueled speculation that Yahoo might consider combining with eBay Inc. or MySpace.

Wow, a 25% stake in Yahoo (worth $37 billion) would be $9.25 billion. If News Corp has the chance to flip their $580 MM investment to $9.25 billion that would be incredible. Definitely seems overpriced for MySpace to be honest though.
WG

DMAN! that is too many zeros to understand !!!!!! dat be a hole lot of ducks!

The rumors over Yahoo! are flying all over the place. The CEO got the boot on Monday. News Corp wants a stake in Yahoo! and Merryl Lynch thinks Microsoft and Yahoo! should merge. It will be interesting to see what shakes out in the end.

a ton of money going around

A couple of weeks ago on Mad Money Jim was saying that eBay and Yahoo should merge.

It will be interesting to see who ends up with Yahoo.

these guys are getting crazy with the numbers again. The new net bubble is building.

Dosen't make any sence. Myspace is not worth 10 billions.

Way too much for myspace if that is true.