Word around Wall Street is that Yahoo is in talks with News Corp. for a possible joint venture that would see an incorporation of MySpace and IGN into Yahoo's services and the use of Yahoo's advertising for News Corp. The venture would only give up 20% of Yahoo.
This is way different than Microsoft's proposed buyout, which Yahoo is trying to find alternatives to. If Microsoft ups their bid, they might have no choice but to sell.
The deal might seem better for Yahoo as a business, but it wouldn't result in a large payday for the board of directors like a sale to Microsoft.
Variety: Yahoo in talks with News Corp.