Rumor: Yahoo In Talks To Pay Through The Nose For MySpace
from the punt dept
The departure of Terry Semel did little to excite Yahoo shareholders, who remain hungry for evidence that the company is taking serious measures to fix the company. Perhaps they should be careful what they wish for. It’s being reported today that Yahoo and News Corp. have been in talks about giving MySpace to Yahoo in exchange for a 30% stake in the whole company. No matter how you slice it, such a deal would essentially mean Yahoo paying News Corp. just under $12 billion for MySpace, given that Yahoo’s current market capitalization stands at about $37 billion. You could see why News Corp. would love this deal, seeing as it paid just $580 million for the company two years ago. As for Yahoo, this would be the ultimate act of desperation, seeing as its various social-networking acquisitions haven’t exactly paid off. While talks are still seen as preliminary, the other big winner in this deal would be the analyst that valued MySpace between $10 billion and $20 billion. At the time, it seemed crazy, but these are certainly crazy times.