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Might It Now Be "Yahoo!Space" Instead of "Microhoo!"...?

News Corp Emerges As Possible Savior of Yahoo!

On Monday Rupert Murdoch was reported as assuring the financial press that News Corporation would not be making a counter-bid for Yahoo! but yesterday came new reports that discussions are taking place about integrating Yahoo! with News Corp’s Internet assets. The idea, according to TechCrunch, would be to fold Fox Interactive Media, which includes MySpace, into Yahoo! along with a cash investment by News Corp. and a private equity fund, to create an entity with nearly 150 billion monthly page views - ranking the combo second only to Google.

According to the Wall Street Journal, this isn't the first time the two companies have been in discussion. Over the last 18 months, similar discussions have apparently been taking place but have always faded after disagreements over MySpace's valuation, which in turn affects the size of the stake News Corp. would get in Yahoo!


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