News Corp. May Join Microsoft’s Yahoo Bid; Yahoo, AOL Merger Talks

Rupert Murdoch’s News Corporation is in talks with Microsoft about joining in its contested bid for Yahoo, according to people involved in the discussions. The combination, which would join Yahoo, Microsoft’s MSN and News Corporation’s MySpace, would create a behemoth that would upend the Internet landscape.The talks are a surprising twist in the two-month-long takeover story that began when Microsoft made a $44.6 billion bid for Yahoo.Yahoo has resisted Microsoft’s overtures, contending that it will not negotiate unless Microsoft raises its offer.Yahoo, which wants to remain independent, has been in a desperate search for white knights, holding conversations with Time Warner’s AOL and News Corporation. Yahoo, AOL may combine forces; News Corp. talking to Microsoft [IDG]
Yahoo is in talks with Time Warner on a deal to combine Internet operations with AOL, while News Corp. is in talks with Microsoft to jointly bid for Yahoo, the Wall Street Journal reported Wednesday.The possible deal between Yahoo and AOL is a bid to thwart Microsoft’s bid for Yahoo. Yahoo plans to present shareholders with a three-fold plan to move forward without Microsoft. The Yahoo plan would also include a multi-billion dollar stock repurchase as well as an advertising tie-up with Google, the report said.

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