Sunnyvale, Calif. - Still searching for ways to stave off a hostile takeover by Microsoft (NASD: MSFT), Yahoo (NASD: YHOO) is in discussions to swap a substantial stake in the company -- potentially more than 20% -- for some of the online properties owned by media giant News Corp. (NYSE: NWS), which include MySpace, IDG and Dow Jones, The Wall Street Journal reported on Wednesday, following earlier reports by TechCrunch and Silicon Alley Insider. The deal, variations of which have been discussed by the two companies several times in recent months, reportedly would include a consideration of cash from News Corp. and an unnamed private equity firm, as well.

The Journal said that a hitch could be disagreements about the value of MySpace, which NewsCorp is pushing to be upwards of $10 billion.

"The deal would allow Yahoo to remain independent while giving News Corp. substantial control over a huge array of Internet properties and advertising opportunities," The Journal reported.

Yahoo's board of directors recently rejected Microsoft's $44.6 billion takeover bid.

Related Links:
http://online.wsj.com/article/SB120293230377566103.html

http://tinyurl.com/22t2ea (TechCrunch)

http://tinyurl.com/yts9qu (Silicon Alley Insider)