MyYahewSpace? News Corp and Yahoo may combine sites

by Jarrett Martineau | February 13, 2008 at 06:07 pm

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Big media mergers that once involved broadcasters and print publications have shifted into the online world, where competition for audience and advertising dollars is equally fierce, ruthless, and aggressive.

In other words, a perfect world for Rupert Murdoch to work his dark magic.

Rupert Murdoch's News Corp. is in talks about combining MySpace and some of its other online properties with Yahoo, the Wall Street Journal reported Wednesday.

In return, News Corp. could end up with a stake in Yahoo that could be bigger than 20 per cent, the Journal said in its online edition.

The report said the tie-up would be a way to help Yahoo fend off Microsoft's unsolicited $44.6-billion takeover attempt. Yahoo has rejected that offer as inadequate.

A deal between News Corp. and Yahoo would allow Yahoo to stay independent, while offering News Corp. an entree into a whole new range of internet properties as well as their lucrative advertising opportunities.