What’s the latest on the News Corp. – Yahoo talks we reported last week? They’re still going on, we hear. Last Wednesday, a News Corp. delegation flew up to meet top Yahoos, including Jerry Yang. Another round of talks is scheduled for this week.
What are the odds that these talks amount to anything? Still low. Yahoo would very much like to pull off a deal that keeps itself out of Microsoft’s arms, and Rupert Murdoch would love to convert MySpace to Yahoo equity while expanding his access to Web inventory. But we get the sense that both sides feel this deal won’t happen.
So why explore it? Because neither side has anything to lose, and both get something out of the conversations no matter what they lead to: Yahoo gets a little more time to round up Microsoft alternatives (or to discover it really has none). And News Corp.’s team gets a behind-the-scenes look at the second-most powerful company on the Web — and a sense of how far it has to go if it wants to measure up.
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