Microsoft Corp and News Corp are in talks about making a joint bid for Yahoo Inc that would add MySpace to the Yahoo-Microsoft combination proposed by the world's largest software maker, The New York Times reported on Wednesday. ( Reuters )
The talks with News Corp, which previously had discussed working with Yahoo as a counter to Microsoft's unsolicited $42 billion bid, are at a "sensitive stage," the newspaper quoted people involved in the discussions as saying.
Yahoo faces a three-week deadline from Microsoft to reach a deal or face a hostile effort to take over the board, and it is eagerly searching for alternatives or proof that it is worth more than Microsoft has offered.
Yahoo's talks with Time Warner Inc are growing closer over a deal that would unite Yahoo and AOL, according to a person familiar with the talks, and Yahoo is preparing to test using Web search advertising from Google Inc.