KEY POINTS:
Rupert Murdoch's News Corporation is reportedly in talks with Yahoo about a possible deal that would stave off an approach from Microsoft.
The Wall Street Journal says News Corp is eyeing a move that would see MySpace and other of Mr Murdoch's web interests merge with Yahoo.
Yahoo would give News Corp 20 per cent of its shares under the alleged deal, allowing it to remain independent.
Microsoft has offered to buy Yahoo for more than $44 billion.
However, Yahoo has dismissed the move as undervaluing its brand.
- RADIO AUSTRALIA
