News Corp enters Yahoo discussions

RUPERT Murdoch’s News Corporation has entered discussions with Yahoo about an alliance that would combine the News-owned MySpace with the internet giant, according to a Wall Street Journal report.

The talks add both flavour and drama to what is becoming a fight for Yahoo. The WSJ says the discussions are part of a strategy to thwart Microsoft’s US$45 billion (A$49.9 billion) unsolicited bid for Yahoo.

According to unnamed sources, the deal would involve News Corp getting a stake of 20 per cent or more in Yahoo. The IT industry blog TechCrunch is also reporting the discussions.

News and Yahoo have held discussions about a tie-up in the past that focused on the MySpace property being used to swap for Yahoo equity, but those talks have previously broken down over the valuation of MySpace.

But since Microsoft’s hostile takeover bid earlier this month, Yahoo has aggressively pursued other strategic alliances that would keep the company outside of Redmond’s grip.

The Yahoo board formally rejected the Microsoft earlier this week saying it undervalued the company. But Microsoft responded saying it would take all necessary steps to consummate the deal, and is likely to come back with a revised offer.

Meanwhile, TechCrunch is reporting that the first of the “inevitable” lawsuits have started to be filed against Yahoo from shareholders unhappy that the company rejected the Microsoft offer.

The web site reports that more shareholders are expected “to pile on board” legal actions as Yahoo further resists the Microsoft overtures.

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News, NBC sends Hulu video to beta

MEDIA giants News Corporation and NBC have begun beta-testing a digital video delivery platform called Hulu.com that aims to distribute television programming online.

The new company will use News Corp – owners of the Fox network – and NBC television shows as its core content, but has also signed licensing deals with Sony Pictures Television and MGM.

Hulu.com said the service would let people access popular TV shows on-demand, anywhere and anytime via the internet. The service will be ad-supported and free to users, the company said.

“Consumers are clearly interested in easily accessing a broad spectrum of programming,” News Corporation's president and chief operating officer Peter Chernin said.

Hulu chief executive Jason Kilar said the service would deliver full episodes and clips of popular shows like The Simpsons, House and The Office.

“You'll also find a large number of classic television series, including Arrested Development, Miami Vice, Buffy the Vampire Slayer, and The A-Team,” Mr Kilar said on the Hulu.com blog.

“We're also going into beta with an initial selection of feature films that includes Conan the Barbarian, Sideways and The Blues Brothers,” he said.

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