Murdoch linked to Yahoo interest

Rupert Murdoch is muscling in on software giant Microsoft’s takeover plans for internet search engine Yahoo, it was reported today.

The News Corporation chairman is in talks over merging his MySpace social networking site and other online businesses with Yahoo to help the firm beat off Microsoft’s approach, the Wall Street Journal reported.

Microsoft wants to buy Yahoo to offer a greater challenge to Google’s online dominance, with News Corporation also said to be keen on a deal with Yahoo for the same reason.

Yahoo rejected Microsoft’s initial $44.6bn (€30.5bn) approach on Monday.

News Corporation – which was unavailable for comment – and an unnamed private equity firm would pump cash into Yahoo in return for a stake of more than 20% of the business, according to the report.

The plans could put News Corporation’s weight behind Yahoo – offering a platform to distribute its news as well as thwarting Microsoft’s growth plans.

A tie-up would represent the latest expansion of Mr Murdoch’s media empire following his $5bn (€3.4bn) acquisition of Wall Street Journal publisher Dow Jones last year. He bought MySpace for $580m (€397m) in 2005.