The move comes after early reports about the lackluster start of Rupert Murdoch's MySpace in China. The first comments are carefully positive:
What we can expect from this merge? At least, the merge shows that Myspace China is almost entirely autonomous from Myspace to make its own strategy, which is a good start to compete in Chinese market.
One of the problems Yahoo and other US-based internet companies had was that they were too dependent on their US bosses and could not develop according to the requirements of the China market.
Update: The story has been denied later today by Luo Chuan. See the comment.