RupertHoo?
TechCrunch reports that NewsCorp and Yahoo are working frantically to put final touches on a plan to merge Fox Interactive into Yahoo. According to TechCrunch, the details are:
- NewsCorp would spin off Fox Interactive, which includes MySpace, IGN, FoxSports.com, Photobucket and other online properties.
- Fox Interactive would be integrated into Yahoo, along with a sizable cash infusion from News Corp and a private equity fund
- The new Yahoo would be valued at roughly $50 billion, above the $45 billion Microsoft offer, with NewsCorp and the PE firm owning about 20%
The deal would not be simple, according to Arrington. Yahoo would still have to outsource its search biz to Google to make the terms work, which would be likely to raise antitrust issues. Meanwhile, Microsoft is expected to raise their bid to the $35 range this week (roughly $50 billion). There had been earlier rumors of NewsCorp seeking to bid on Yahoo but that they'd had trouble getting private equity interest. The coming week should be interesting.
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