Rupert Murdoch has revived discussions over merging News Corp’s MySpace social network with Yahoo, potentially thwarting Microsoft’s planned $41bn takeover. While Mr Murdoch told investors last week that he would not make a bid for Yahoo, he is ready to consider some form of asset swap involving Fox Interactive Media properties. Aside from MySpace, these include IGN, Photobucket, Fox Sports and AmericanIdol.com.
One or more private equity firms might be invited to join the putative deal, according to authoritative blogs Silicon Valley Insider and TechCrunch, who say the plan would involve assets of around $15bn and value the whole of Yahoo at $50bn.
But not everyone is convinced. Henry Blodget, former internet analyst turned pundit, says this is effectively an attempt by Mr Murdoch to sell MySpace at a chunky premium. He says neither Yahoo shareholders - nor the mysterious private equity firm - will accept the likely terms.
Lex, meanwhile, says the news should encourage Microsoft to get a move on and offer Yahoo shareholders a better price.
