Yahoo And News Corp. Continue Marathon Discussions; Possible Bid To Counter Microsoft

Yahoo and News Corp. are in the middle of marathon discussions, and have more details. According to our source, the deal structure would spin off Fox Interactive Media (the primary asset is MySpace, but IGN, Scout Media, Photobucket, Fox Sports, AmericanIdol.com, Flektor, Ksolo; plus investments in Hulu, Simply Hired and Snocap are also assets of FIM) into Yahoo, along with a big cash injection from News Corp. and an unnamed private equity fund. The total investment would be valued at around $15 billion.