Microsoft and MySpace Parent in Talks About Joint Yahoo Bid

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.

News Corporation would probably contribute its Fox Interactive Media unit, which includes MySpace, and possibly cash to a partnership with Microsoft as part of an acquisition of Yahoo, they said.

On Wednesday, Yahoo suggested that it might be willing to cede part of its core business to Google, an archrival, to remain independent.

One Comment

  1. Posted April 10, 2008 at 9:00 am | Permalink

    Microsoft’s General Counsel Brad Smith issued a statement on Thursday, warning that any deal between Yahoo and Google would hurt competition.

    “Any definitive agreement between Yahoo and Google would consolidate over 90 percent of the search-advertising market in Google’s hands. This would make the market far less competitive, in contrast to our own proposal to acquire Yahoo.”

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  1. […] Chris Lang opf Social Marketing and Social Networking, wrote an interesting post today on Microsoft and MySpace in talks on a joint Yahoo Bid….