The FT reports talks between MySpace and Google/Microsoft who are keen to capture more of the youth market.

The rapid growth of social networking sites such as MySpace and Facebook has threatened to tip the balance of power on the internet away from traditional portals and search engines.

Their potential to become the places where many young people spend most of their internet time could make them the “gatekeepers”, or the entry point for online activity.

The rise of the social networking sites has already forced the established internet powers to revise their views of how new audiences will emerge on the internet.