LONDON (AP)

Rupert Murdoch's News Corp is discussing swapping internet site MySpace for a 25 per cent stake in Yahoo Inc, The Times newspaper reported.

The Times, which is owned by News Corp, said its parent was looking for exposure in a larger internet-based business such as Yahoo.

News Corp spent $US580 million ($A686.35 million) to buy MySpace in 2005.

Based on Tuesday's closing share price, Yahoo was worth $US37 billion ($A43.8 billion).

Yahoo has been losing out to Google Inc, whose shares have increased six-fold in value since 2004 while Yahoo's share price has dipped.

Profit at Yahoo fell 11 per cent in the first quarter, the company said on Monday, and it warned that second-quarter results may be at the low end of expectations.

The downturn has fuelled speculation that Yahoo might consider combining with eBay. Inc. or MySpace.
20/06/2007 05:14:31 PM