I've been reading about this for the last day but had not focused on a purported story (first saw it on BuzzMachine) that:

"…News Corp would sell/merge MySpace into Yahoo for 25 percent of the company while Yahoo — now Myhoo — would outsource its search business to Google, probably making more in search than it could on its own. (More from this Times and that Times.)

This could be a brilliantly cagey move even for brilliantly cagey Murdoch, for it gives him an at-least 20x return on his MySpace investment in only two years ($580 million for MySpace now bringing in more than $10 billion in Yahoo equity) and gets him out of managing MySpace, which could be tough as Facebook gains speed. (Murdoch also becomes the rescuer — depending on your perspective — of old-media companies from Wall Street to Silicon Valley — Dow Jones and Yahoo both being old-media. But note that he was still too smart to buy newspaper empire Tribune Company; that’s just too old.)"

Jeff Jarvis put the odds of this Yahoo stock swap happening at next to 0%:

"..The odds of this happening: about 0.1 percent. News Corp. could be nimble enough to pull it off. But Yahoo is, witness the peanut-butter manifesto, just too large and lumbering and, well, old, at 14 years of age, to move decisively. But that was fun to contemplate anyway."

But I would not be surprised if something like this would happen…it seems in Murdoch's character - just a hunch.