Yahoo could join up with News Corp's Myspace

Many news wires are reporting that Yahoo is in talks with Rupert Murdoch's News Corp in a last minute bid to fend off Microsoft's hostile buyout offer.

The man who best symbolises how the traditional media sector should embrace the new media era, could bag itself a real bargain.

According to the Wall Street Journal, News Corp is considering merging its internet properties plus some money with Yahoo in return for a 20 percent share which would allow Yahoo to remain independent for now.

SiliconAlleyInsider mentions MySpace and other Fox Interactive Media Assets worth between $6 and $10 billion and Cash between $5 and $9 billion.

Yahoo had refused Microsoft's offer of $44.6 billion on Monday saying that it seriously undervalues the company's brand and goodwill as well as earnings potential.

News Corp already owns Myspace and substantial media interests including a chunk of BSkyB, The Sun, Fox news and The Times.

The deal, if it goes ahead, would probably require some serious financial jiggery-pokery as News Corp is not financially as strong as Microsoft having 'only' earned $10 billion as gross profit in 2007, a quarter of what Microsoft made during the same period.

Infoworld says that apart from News Corp's own cash, there might be a private equity firm involved which could mean even more layoffs at Yahoo.