Reports about Possible Yahoo and Microsoft Deals

The news today is full of behind-the-scenes dealmaking involving Microsoft and Yahoo.  First, it is reported that News Corp. (Rupert Murdoch) and Microsoft are in talks about a joint bid for Yahoo that, if successful, would combine Yahoo, MSN, and MySpace.  Second, Yahoo reportedly is having talks with TimeWarner about combining AOL with Yahoo's internet operations.  The deal would include Yahoo buying back some of its shares at a price higher than Microsoft's bid.  (Previously, it was reported that Yahoo had talks with News Corp too.)  In addition, Yahoo announced it would test outsourcing some of its search advertising to Google, to see if it resulted in more revenues.  Microsoft blasted the partnership as anticompetitive.  NYTimes, News Corp. May Join Yahoo Bid With Microsoft; WSJ, News Corp., AOL Pursue Yahoo Deals.