Rupert Murdoch's News Corp picked up MySpace in 2005 for $580 million. Now the company is trying to offer MySpace, and possibly some other properties like IGN, to Yahoo! in exchange for a quarter stake in the portal. After the merger, that 25% stake could be worth more than $12 billion.

It's not clear whether the recent leadership change at Yahoo! will help or hurt the deal in any way.

Yahoo! is definitely interested in breaking into the social networking game. The company made a failed $1 billion dollar bid for Facebook last year. It'll be interesting to see how much MySpace, a site that's been losing ground to Facebook in recent months, is worth to Yahoo!