Yahoo! and MySpace - Games and Partnerships

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A lot is happening over at MySpace and Yahoo! these days.

First MySpace has launched a new game section that is loaded with Flash games including multi-player games. Warning many of these games will cause a lack of productivity. As is normal on MySpace you can add games that you like to your profile to share it with your friends (although can you imagine how much longer this could make some profiles load). You can click here to go to the games.

Even bigger news is the possibility of a partnership between News Corp (owners of MySpace) and Yahoo. Below is an excerpt of the Mashable post of the rumored partnership.

A report out this afternoon in The Wall Street Journal pumps life back into the rumor that Yahoo and News Corp are negotiating a deal that would trade MySpace and other Fox Interactive properties for a significant stake in Yahoo.

According to the Journal, the negotiations hinge on valuations; News Corp wants MySpace to be valued between $6 and $10 billion, while Yahoo needs to come in with a valuation that beats Microsoft’s $44.6 billion offer to stand any chance. Adding up the numbers between MySpace and other News Corp properties such as IGN, plus a likely infusion of cash, the WSJ says the stake in Yahoo could be more than 20 percent.

The rumor of a News Corp-Yahoo alliance is nothing new – there was significant chatter about the possibilities as recently as last summer. But with Yahoo seemingly desperate to avoid falling into Microsoft’s hands, it’s not surprising they are resuming talks.

Once again, I’m left not seeing a way that any sort of News Corp alliance is going to maximize value for shareholders of either company, especially with Yahoo and News Corp both going into the talks with valuation numbers grounded in nothing other than self-interest. Similar to Microsoft making a relatively small investment in Facebook that valued the company at $15 billion – just because Yahoo and News Corp say the deal makes Yahoo worth $50 billion and MySpace worth $10 billion doesn’t mean the public markets will see it that way (which, is all that really matters).

You can read more about it at Mashable.

I would love to hear your thoughts on all of this news. As always you can either comment on it or you can write your own post on this blog if you sign-up for a free account.

[...] Yahoo! and MySpace - Games and Partnerships By David Hurth A report out this afternoon in The Wall Street Journal pumps life back into the rumor that Yahoo and News Corp are negotiating a deal that would trade MySpace and other Fox Interactive properties for a significant stake in Yahoo. … Ajaxonomy - The Study of Ajax… - http://www.ajaxonomy.com [...]

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