According to New York Times Microsoft Corp. is in talks with Rupert Murdoch' News Corp, publishers of 'The Wall Street Journal' about a joint bid towards the acquisition of Yahoo!. As of now, the two corporations still need to reach an agreement, but some sources have stated that the talks are extremely serious in nature. If this deal goes through, it will combine three of the Internet's biggest giants: News Corp's MySpace, Microsoft's MSN and Yahoo!.

A Microsoft & News Corp joint venture would create a huge platform for online advertisers and bring together the biggest entities in social networking, online news and email.

The terms of the proposed union have still to be worked out and according to sources as of now, the details remain murky. News Corporation could contribute MySpace and cash investment has also not been ruled out.