Murdoch Offers MySpace Swap for Yahoo Stake

By DT Staff Published October 25, 2009

Murdoch Offers MySpace Swap for Yahoo Stake It’s the ultimate game of swap. News Corp. head Rupert Murdoch is offering MySpace, his recent high-profileacquisition, to Yahoo in exchange for 25% (some have reported 30%) ownership of the Internet giant. MySpace cost Murdoch $580 million in 2005, just as hespent $650 million for IGN, the online gaming network, giving him a commanding online presence. He also tried to buy YouTube, then snapped up Photobucket for a cool $250 million. Yahoo, on the other hand, has been looking to jump fully into the social network market after the relative failure of itsYahoo 360 venture. It reportedly made an offer for Facebook. MySpace would instantly transform it into a major player. In return, a deal with Yahoo wouldmean greater exposure for Murdoch’s traditional media companies, and expand his online presence. The possibility of the deal comes just days after the resignation of Yahoo CEO TerrySemel, at a time when co-founder Jerry Yang has taken the reins, and some have said the company needs to take a more aggressive role. Murdoch, meanwhile, has a $5 billion offer on the table tobuy the Dow Jones group, which includes the Wall Street Journal.

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This post is brought to you in paid partnership with T-Mobile Fiber

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