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 between Microsoft and News Corporation are at a sensitive stage, people involved in the discussions said. “There’s a long way to go before anything is definite,†one person involved in the talks said. http://www.nytimes.com/2008/04/10/technology/10google.html
Hmmm... I'd actually read that NewsCorp was acting as an middle man for AOL, but they could be going in with Microsoft themselves I suppose.
Microsoft said they will go it alone for Yahoo, NewsCorp wants to get ride of Myspace since they are having a hard time monetizing it and the value on it is falling.