Yahoo-MySpace: Good. God.

Posted by: Jon Fine on June 20, 2007

Multiple reports out there revealing (very) early stage discussions between Yahoo and MySpace over a partnership that would value the latter at $10 billion.

That’s “$10 billion or more.” I’m as big a fan of this whole social-networking-thing as practically anybody, but am I the only one who thinks this valuation is — how to put this properly? — deranged?

Around two years ago, I riffed in a column about traditional media companies’ strategic missteps:

To move the needle right now, you need something massive. You need, for instance, to buy Yahoo. Of course, today it’s too late to buy Yahoo. Today, Yahoo buys you.

Assuming, that is, that Yahoo thinks its business sense can cross the generational divide. Or that it’s even worth the bother.

We are now in 2007. Yahoo’s reeling from its own missteps, and Yahoo triumphalism is long gone. Hence the MySpace discussions. And hence the new reality: In 2006 and 2007, Yahoo might have bought Facebook. In 2008, maybe Facebook buys Yahoo.

Assuming Facebook thinks its business sense can cross the generational divide.

Or that it’s even worth the bother.

UPDATE: Citi’s Jason Bazinet points out in an analyst commentary on the proposed deal that “valuation questions remain.”

Huh. You think?

Reader Comments

Thomas

June 20, 2007 9:59 AM

Sounds like a great deal for Rupert: MySpace begins to slow to normalized growth and he gets a substantial chunk of the second greatest Internet property in the world. Man, that Rupert is one bad mamma jamma.

Robert Gorell

June 21, 2007 12:05 PM

Even if Yahoo tried to buy MySpace for $3 Billion, it would be the wrong move. If that's any sign of things to come under Yang's watch, I'd say they're in big trouble.

They've already got Flickr integrated on Facebook, which is way more flexible, anyway. MySpace wasn't built for what it's doing right now and, although it's gotten better lately (less spam, etc), it's laughable to think that it's worth $10 billion. It's beyond laughable; it's pathetic.

Don't do it, Yahoo!

chris

August 21, 2007 11:48 PM

rock on dude u tell it

BoYz RwNg

October 8, 2007 8:41 PM

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