Yahoo! in talks regarding a News Corp partnership

People have described Microsoft’s possible acquisition of Yahoo ! as a shot-gun wedding. Well, there could be another shot-gun wedding in the works and Microsoft isn’t even invited to the reception.

Rumour has it that Yahoo ! is in talks with Rupert Murdoch’s News Corp regarding a partnership that could help fend off Microsoft’s $44.6bn bid.

A fortnight ago, Microsoft offered the struggling web portal nearly $45bn in an unsolicited take over bid.

Ten days later Yahoo ! politely declined Microsoft’s offer, basically saying that if Microsoft wanted to shack up with Yahoo ! it’d have to offer a lot more than $44.6bn or $31 per share. Yahoo felt that the measly offer “substantially undervalued” the company.

However, while the statement from Yahoo ! clearly said “thanks, but no thanks” there was a little something else in there too.

"The board of directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders,"

In other words, we’re up for a bit of haggling if you are.

Well perhaps this is just what Microsoft needs to give it a little shove in the right direction.

The Wall Street Journal yesterday reported that the partnership would mean News Corp would get a 20 percent stake in Yahoo.

This could be the crutch Yahoo ! Needs to help it get it’s feet back on the ground. On the other hand, it could be the little shove Microsoft needs to up the stakes. . .As always, watch this space.