New York - News Corporation (NYSE: NWS) is in negotiations with Microsoft (NASD: MSFT) to join its hostile takeover bid for Yahoo (NASD: YHOO), while Yahoo, which has rebuffed Microsoft's advances, has itself been holding talks with AOL and News Corp., The New York Times reported on Thursday. Should News Corp. join Microsoft in its offer, Yahoo would likely see a higher bid made than Microsoft's current offer, in a deal that would combine Yahoo with Microsoft's MSN and News Corp.'s MySpace.

The Times reports that News Corp. head Rupert Murdoch met with Yahoo CEO Jerry Yang in the days following the Microsoft bid, and offered to help thwart the deal -- but reportedly, antitrust concerns have stalled that idea.

Meanwhile, the Wall Street Journal reported yesterday that Yahoo was also in talks for a deal with AOL, which would see Yahoo acquire the firm and provide AOL parent company Time Warner (NYSE: TWX) with a 20% stake in Yahoo.

Both reports came after Yahoo announced yesterday that it will conduct a limited test of Google's (NASD: GOOG) search advertising service on its site.

Yahoo's board is expected to meet again sometime this week.

Related Links:
http://www.nytimes.com/2008/04/10/technology/10google.html

http://www.news.com/8301-10784_3-9916001-7.html