Rupert Murdoch's News Corporation is reportedly talking to Microsoft about involvement in its bid to take over Yahoo! As previously reported, the IT giant has been making moves to buy the net company, but Yahoo! bosses have so far resisted those moves, arguing Microsoft are undervaluing their company. But Microsoft seem determined to get Yahoo!, and have indicated that they may launch a hostile takeover if necessary.
According to the New York Times, News Corp is talking to Microsoft about forming an alliance in the online domain, and then bidding for Yahoo! together - the Murdoch company's involvement would presumably enable them to up their offer and secure a takeover without having to go the messy hostile route. Such a deal would bring Microsoft's MSN network and News Corp's MySpace social network and all of Yahoo!'s assets into one group, which would give that group considerable influence in the web advertising space, and enable it to take on their big competitor in that domain, Google.
Yahoo!, meanwhile, says it is still considering all options for its future development. While that means any Microsoft or News Corp deal would still be considered, they are currently piloting an advertising alliance with Google, which could potentially piss off other suitors. Meanwhile the Wall Street Journal reports a deal between Yahoo! and AOL is once again in the offing. So, who knows what will happen? Not me.