Time Warner’s AOL are in talks with Yahoo! for potential mergers. It is reported that this is to thwart the attempts of Microsoft to purchase Yahoo!
In related news, it is reported that NewsCorp are in talks with Microsoft to get together and buy Yahoo! as a collective, potentially making the worlds largest consortium for online advertisers.
Microsoft are tipped to still be leading the charge for taking over Yahoo! – its just a matter of dollars and cents and how much Microsoft are willing to spend. Currently they have offered $43 Billion USD for the company, in a mix of cash and stock.