Rupert Murdoch is offering the MySpace site to Yahoo for a minority portion (25%) of the Yahoo stock. Certainly, having MySpace.com on its side would benefit Yahoo in obtaining more traffic and loyalty to its search engine and other services that compete with Google, but many question if the two giants could pull it off.

There’s no doubt Yahoo could improve the MySpace service and integrate more features with better networking abilities similar to Facebook.com. However, whether or not Yahoo can actually funnel the site’s users to its existing services and increase the usage of those services is still in question.

Certainly, on a MySpace marketing standpoint, the trade would be great news. Not only would there be more features and traffic, but the trade would offer businesses more security and users. MySpace competitors would begin to lose traffic to MySpace because Yahoo would probably direct its business services and advertising methods through to the social networking giant, building its user base and making it a more sturdy and cost effective way to promote and advertise through.

MySpace currently offers high-priced (2 dollar CPMs with high purchase requirements and sponsored profiles in the tens of thousands, Source:Myspace Media Kit) advertising and usually only responds to businesses with large intentions. Yahoo could turn around this poorly managed advertising service into one where all businesses could enjoy the benefits of advertising on the site. The advertising program for Facebook is a great example of an easy to use advertising service where all business, small and large, can use and benefit from.