News Corp is the latest company to be linked with a high-profile bid for Yahoo, with rumours of plans to link Yahoo with MySpace and other News Corp online properties in an attempt to scuttle Microsoft's unsolicited $44.6bn bid to take over the online giant, according to a report in The Wall Street Journal.

Under the deal, News Corp would get more than a 20 percent stake in Yahoo, according to the report, which quoted people familiar with the matter. The deal would keep Microsoft from acquiring Yahoo, while giving News Corp control over a large number of internet properties and advertising markets. On Monday, Yahoo's board turned down Microsoft's offer, saying it undervalued the company.

The deal between Yahoo and News Corp, which owns the Journal, would also include some cash from News Corp and a private equity firm, according to the report. The deal is similar to one the two companies discussed over the past 18 months, but the talks fell apart over disagreement on the value of MySpace. News Corp is expected to value MySpace at $6bn to $10bn, the Journal said, quoting the unnamed sources.

While not responding directly to the report, a Yahoo spokeswoman said: "Our board is continuing to carefully and thoroughly evaluate its strategic options and is committed to pursuing initiatives that maximise value for all stockholders".