LONDON (AP) - Rupert Murdoch's News Corp. is reportedly considering a swap of social networking website MySpace for a 25 per cent stake in Yahoo.
The Times of London, which is owned by News Corp., says its parent company was looking for exposure in a larger Internet-based business such as Yahoo. News Corp. spent $580 million to buy MySpace in 2005. Officials for News Corp. and Yahoo were not available for comment.
Based on Tuesday's closing share price, Yahoo was worth $37 billion.
Yahoo has been losing out to Internet search engine giant Google, whose shares have increased sixfold in value since 2004 while Yahoo's share price has dipped.
On Monday, Yahoo said its first quarter profit fell 11 per cent, and it warned that second-quarter results may be at the low end of expectations.
