Well this is big. Apparently, Yahoo! has discussed buying MySpace from News Corp in a bid to save itself from irrelevance. In return, News Corp. would get 30 percent of the newly combined Yahoo!+MySpace. Or, in dollar amounts, News Corp would cash in to the tune of $11.1 billion. Considering Murdoch and Co. bought MySpace for $650 million, I’d say that’s a deal and a half. Too bad Yahoo!’s recent restructuring puts the deal, if there ever really was one, in jeopardy.

But you know what? A lot of us here think that buying Facebook is the better move for Yahoo! Let’s admit it: MySpace simply isn’t what it was two years ago and all the momentum in the world appears to be behind Facebook. Its community is just what advertisers love—kids with cash to burn—and the site isn’t a disaster to read like MySpace can be.

News Corp explores swap of MySpace site for Yahoo! stake [TimesOnline]