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Rumors of a Myspace Acquisition by Yahoo

by Gilad on June 21st, 2007

The biggest headline yesterday was from the British TIMESONLINE who announced that News Corp explores swap of MySpace site for Yahoo! stake. According to the article, News Corp who owns Myspace, will be willing to give Myspace away in return for a 30 per cent stake in Yahoo. This means a return of $12.3 billion for their $580 million investment only 2 years ago.

Myspace is currently working exclusively with Google for powering its search feature as well as ad platform and a Yahoo takeover may mean a big blow for Google, considering Myspace is the one of the most visited sites on the net.

I must mention that these talks may fail after all given the resignation of Yahoo’s CEO, Terry Semel, only two days ago and the takeover by Yahoo’s co-founder, Jerry Yang.

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POSTED IN: Rumors & Gossip, Yahoo

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