Feeds

Murdoch could save Yahoo! from Microsoft!

You ain't digging into my space, Monkeyboy

Boost IT visibility and business value

!!!!! Rupert Murdoch is in talks with Yahoo! aimed at fending off the hostile takeover by Microsoft.

Despite repeated denials from News Corp in recent weeks, the two firms are reportedly talking about an alliance based on Murdoch's MySpace. Yahoo! this week officially rejected Microsoft's $44.6bn takeover offer.

The deal would see News Corp exchange MySpace and other web properties for a 20 per cent stake in Yahoo!. It would also bring in private equity money to help Yahoo! develop the combined businesses. Fox Interactive Media, which includes MySpace, turned a profit for the first time in 2007.

A full takeover is unlikely because the company is also still in the process of digesting, and paying for, recent purchases like Dow Jones and The Wall Street Journal. It is not clear how real the deal is and how much it is being used to encourage Microsoft into improving its offer.

In financial terms, Murdoch might be able to play now but could struggle to compete against a likely better offer from Microsoft in the next few weeks.

Murdoch has form on this kind of deal. News Corp subsidiary Sky bought a chunk of ailing UK broadcaster ITV last year. The satellite TV firm didn't need the viewers, but the deal meant it could effectively block Virgin Media buying the broadcaster. Murdoch is not crazy about the idea of either Microsoft or Google moving further into the content market, so following a similar strategy with Yahoo! sounds feasible. UK regulators have since ordered Sky to offload the ITV holding.

Neither Yahoo! nor News Corp have commented on the story, which broke on Silicon Alley Insider.

In other news, Yahoo! is facing a shareholder lawsuit. A pension fund which owns Yahoo! shares is taking the company to court to force it to seriously consider the Microsoft offer. ®

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?