• The Wall Street Journal, Thursday, May 8, 2008 11:15 AM

There's a lot happening behind the scenes post-Microhoo. The Wall Street Journal is reporting that Microsoft informally approached Facebook about a possible sale, and that informal talks with News Corp. over a possible MySpace spin-off are ongoing.

Sources claim that Google, meanwhile, is getting cold feet about providing search ads for Yahoo, indicating perhaps that the search giant was only ever interested in blocking a Microsoft-Yahoo union. After all, Yahoo needs Google here more than Google needs Yahoo. The Sunnyvale, Calif. Web giant is also said to be in talks with Time Warner over trading AOL for an equity stake in the combined company. However, the Journal points out that now that Microsoft is out of the picture, "there is less urgency to reach a deal."

The Silicon Alley Insider claims that a Microsoft-Facebook deal isn't as far-fetched as some might think. It's certainly a better combination than Microsoft and Yahoo, blogger Henry Blodget says. Facebook has recently become the global leader in its business, and because Microsoft doesn't immediately need revenue, an acquisition would buy the company more time to figure out its business model, Blodget says. And to those who say Facebook would never sell should consider how every one of the company's advertising attempts have flopped-although, who's to say that Microsoft would be of any help in that regard?

Read the whole story at The Wall Street Journal »