Thursday, June 21, 2007

Murdoch Said to be Mulling MySpace Swap With Yahoo! for 25%-30% Stake in Yahoo!

Things move fast in the digital world -- little time for vacation!

Just when Semel was out at Yahoo!, the London Times reports that the now Semel-less Yahoo! apparently is in discussions with the very digitally energized Rupert Murdoch to give News Corp. up to a 25%-30% stake in Yahoo! in exchange for Murdoch's entire Fox Interactive Media division, including its crown jewel, MySpace. UBS investment research group, headed by Michael Morris and Matthieu Coppet, give the prospective deal a "thumbs up" from a News Corp. perspective and most pundits thus far seem to agree. And, why wouldn't they? With a market cap today exceeding $37 billion, a 25% share of Yahoo! ain't bad for swapping a business that was purchased a couple years back for significantly less than $1 billion.

Will watch this one closely ...

ShareThis