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Report: Yahoo Keen On FIM Deal

Yahoo wants so badly to avoid a Microsoft takeover (or at least, avoid a takeover at $29 per share) that the Web company has enlisted four or five executives from MySpace owner News Corp. to try and hammer out a deal that would combine Yahoo with News Corp.'s Fox Interactive Media.

A News Corp. bid would look this: Yahoo would assume FIM (which includes MySpace, IGN, Scout Media, Photobucket, Fox Sports,, Flektor, Ksolo, and investments in Hulu, Simply Hired and Snocap) along with a cash infusion from News Corp. and a large third-party investor for a total value of $15 billion. News Corp. and the third-party investor would become the largest shareholder in the $50 billion combined company, with a controlling 20 percent stake.

This is the same proposal that was outlined last week, but the companies can't find a way to make the deal without getting Google involved, as that would involve intense regulatory scrutiny. If Microsoft ups its bid, then Yahoo would be forced to go with it, but now that the software giant has refused, Yahoo and News Corp. have bought more time.

Read the whole story at TechCrunch »

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