MySpace, Yahoo, Facebook & Rupert Murdoch

200px-nottoolate.pngSocial Networks are like celebrities – there is always a pretty young thing just waiting to be discovered. If you follow that logic, then MySpace is like Celine Dion, good for political parodies, but kinda low on the hipness scale. In comparison, the post-API Facebook is like Norah Jones – classic, cool and very still on the way up. So instead of swapping 25%+ of their company for MySpace, Yahoo might be better off making a run at Facebook.

As HipMojo suggests, “Yahoo! should make a run at Facebook, if they’re willing to value MySpace at anything north of $6B, let alone $12B!”

However, looking at the news today, it is a win win for Murdoch.

From Rupert Murdoch’s perspective, this is not such a bad trade. He can swap MySpace for 25% of one of the top destinations on the web, and thereby decide the fate of that company. Murdoch is such a trader – he either finds a bargain or finds a buyer to pay top dollars for a commodity that he thinks is going to decline in value. DirecTV comes to mind.

He is merely capitalizing on the confusion at Yahoo, betting that someone makes a panic-decision. This game of Corporate Chicken Little, might end up getting him more shekels from Google, who at this point must be thinking we-gotta-stop-the-crazy-old-fox.

From Yahoo’s perspective, a deal would help the company expand its advertising platform, give more inventory. Of course, a close relationship with a media company wouldn’t hurt in terms of grabbing content and more such stuff. Anyway, the deal would basically put an end to Yahoo trying to behave like a search company, and finally embrace its inner media giant.

PS: Since all the talk is based on a report in Murdoch-owned Times of London, and on an unnamed source, this is just idle chatter.

  • Category: Web