According to a report in the New Times, News Corporation is in talks with Microsoft about joining forces for the Yahoo! buyout bid.
The move would align Yahoo!, MSN and MySpace to create a formidable competitor for search engine giant Google. Two months ago Microsoft made a $44.6 billion offer to Yahoo! which rejected the proposal on the basis that it was too low. Since then Yahoo! has been in talks with other major media companies, including News Corp, about a potential tie-up. Microsoft has threatened to initiate a hostile take-over of the company.
“There’s a long way to go before anything is definite,’ one person involved in the talks told the New York Times.