YaFoxHoo? Now that makes some sense…

The rumors of a potential offer from News Corp for Yahoo are interesting and CNBC claims they’ll have some new news from news corp in a few minutes, though I’ll be surprised if this is more than rehasing the rumors swirling around that appear more as linkbait for blogs than substantial information.    

CNBC is referencing Jessica Vascellaro’s story at WSJ:

The deal would allow Yahoo to remain independent while giving News Corp. substantial control over a huge array of Internet properties and advertising opportunities.

News Corp, already a key internet player because they own Myspace and many Fox properties that have huge online visitation, could leverage the Yahoo aquisition to some advantage, perhaps through monetization optimizing, cross promotion, and such.    However I would not want to try to make the case to Murdoch that Yahoo is worth *more* than MS already generous offer.   As employees run for the door and the board is more interested in fighting than switching, I’m not clear Yahoo should be playing hard to get right now with anybody.

Disclosure:   Long on Yahoo

News Corp Advertising Network. Under the Radar?

Facebook’s targeted advertising was criticized heavily last week by bloggers despite Facebook promises to create a better user experience through better targeting of the ads.   I’m guessing users will hardly notice the change, and advertisers will continue to be underwhelmed with the performance of social network advertising although these ads will play an increasingly important role as social networking explodes and the number of page views on social networking sites like Myspace exceeds pageviews on any other site.

I think Myspace now has the top global pageview count which is why the new ad network from News Corp (Myspace’s parent company) is an important development.    It appears they will sneak in under the radar and avoid the heavy criticism levied against Facebook even though presumably they’ll also be working hard to target the ads to the specific Myspace user profiles.