News Corp, the company that owns MySpace is rumored to be in talks with Yahoo regarding a very interesting deal indeed. Apparently the two companies are considering a trade. 100% of MySpace for approximately 25% of Yahoo. Considering that Microsoft was recently considering a $55 Billion dollar purchase of Yahoo, that would essentially value MySpace at just under $14 Billion dollars. Quite an improvement over its’ 900 million dollar sale a few years ago.

I think this would be a good deal for both parties. Yahoo is struggling as it is, so taking over 100% ownership of MySpace while maintaining 75% of itself might be a very good way to diversify a bit. Of course then if Yahoo sells out to Microsoft (which I believe is no longer being discussed) then maybe Microsoft will get ahold of MySpace. Who knows.

It’s very interesting to follow these large buyouts and mergers. I think if Yahoo took over MySpace it could be a good thing. I’m not a big fan of MySpace personally but I think Yahoo’s social networking could be a lot better if it combined with MySpace. Hey maybe Yahoo would change the name of MySpace to YSpace… Highly unlikely considering the name recognition that MySpace commands, but, even so, perhaps if Yahoo took over the social networking giant they would network the accounts with Yahoo accounts and make it easy for MySpace users to play games on the Yahoo Games website.

Yahoo also owns del.icio.us, a popular social bookmarking website similar to Digg. Interestingly enough, News Corp currently has a $5 Billion dollar bid in for the Dow Jones. It will be very interesting to see where all of these discussions go, but, for now it seems that nothing is official.

Source: ABC