News Corp. is in talks with Yahoo! but analysts aren’t taking the bait. The idea is that a deal with News Corp. might send Microsoft running but in the end it is more likely that they’ll end up raising their bid price.  Ruport Murdoch has said that they are not interested in bidding on Yahoo! but that doesn’t mean they can’t give that impression anyway. It would be somewhat problematic for News Corp. if any kind of deal actually went though as a reported 20% stake in the struggling search engine would be a step backwards for the media giant. News Corp. already stepped into the interactive world when it bought Myspace in 2005 and doubled it’s web traffic to more than 45 million unique monthly users.

This news comes on the heels of the rejection of the bid by Yahoo! but before Microsoft has made its next move. There are also rumors still floating around about a possible Apple or Google interception of Yahoo! but nothing confirmed as of yet.


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