This assumes that News Corp. wants to reduce its direct role in interactive advertising in order to focus more on content. On the other hand, Yahoo
would have to convince shareholders that this is a better alternative than becoming part of Microsoft-which might entail a more laborious transition.
Meanwhile, TechCrunch's Michael Arrington (link: http://www.techcrunch.com/2008/02/12/yahoo-and-news-corp-continue-marathon-discussions-possible-bid-to-counter-microsoft/), through another unnamed source, confirms the SAI rumor, saying a deal would make the News Corp./private equity tandem the largest single shareholder in Yahoo/FIM, placing it in control of the combined company. This is certainly a threat to Microsoft, which should force the software giant to up its bid to north of $35 per share.