Media mogul Rupert Murdoch is considering the prospect of teaming up with Microsoft to assist it in its bid to takeover search engine provider Yahoo!, it has been suggested.A source close to the matter told the New York Times that the Australian businessman's News Corporation is discussing how it could back up Microsoft's bid for Yahoo!.
Reportedly, the terms of a possible deal are still being worked out, but the joint proposal would add social networking site MySpace to the Yahoo!-Microsoft combination currently being suggested by the software giant.
The talks between Murdoch and Microsoft are understood to be at a sensitive stage, with one insider telling the New York Times that there is "a long way to go before anything is definite".
Meanwhile, another source stated that News Corporation would put extra money into the Microsoft offer for Yahoo!.
Both of the sources spoke on the condition of anonymity because the negotiations are still at a private stage.
Neither Microsoft nor News Corp would comment on the possibility of an agreement.
Meanwhile, in a bid to fend off a Microsoft takeover, Yahoo! has reportedly begun to close in on a deal with Time Warner's AOL unit under which it would receive a cash investment from Time Warner in exchange for a 20 per cent stake in the combined AOL-Yahoo! business.
