Despite Rupert Murdoch's claims that he is not interested in striking a deal with Yahoo!, sources familiar with the matter suggest his company News Corp is working on a potential agreement.With Yahoo! currently examining a range of potential escape routes from Microsoft's hostile takeover bid, it is rumoured that News Corp has stepped into the fray.
Under the terms of a potential deal with Murdoch, Yahoo! would give his firm a 20 per cent stake in exchange for its internet properties and a cash infusion that values the search engine provider at around $50 billion, insider sources have suggested.
According to reports in the Los Angeles Times, a News Corp team have been working on a proposal to rival Microsoft's offer since the weekend, a media industry executive with knowledge of the issue stated.
The executive added: "They actually all missed the Super Bowl. They were all called back from their homes to the office to prepare for a Monday meeting with Rupert."
Under the plan being discussed, Yahoo!'s Jerry Yang and Susan Decker would run the combined firm, which would include Yahoo!, MySpace and other internet properties owned by News Corp.
Additionally, Yahoo! would receive a cash injection to pay a one-time dividend to shareholders.
Last night, a spokeswoman for Yahoo! stated: "Our board is continuing to carefully and thoroughly evaluate its strategic options and is committed to pursuing initiatives that maximise value for all stockholders."
