According to reports in The Times, News Corp. have been in talks about the possibility of swapping MySpace in exchange for a chunk of Yahoo.

According to anonymous sources, the two companies have been in discussions to hand over MySpace in return for either a 25% or 30% (reports differ) stake in the Internet giant Yahoo.

Yahoo's curent market value is around $37 billion so the suggested deal would put a value of around $10 billion on the social networking site.

Terry Semel, Yahoo's now-former CEO resigned this week leading to speculation that the talks, which were only informal anyway, are now on hold.

Neither side have offered official comment.