I don't know how true rumors of Newscorp (NWS – $23.74) negotiating to own a piece of Yahoo (YHOO – $27.91) got started, but it would definitely be a postive for the stock.  It would mean that management had a shareholder who would always be lighting a fire under their butts.  I'd love to have Murdoch as a partner but at the rumored 30% of Yahoo that Newscorp would get for trading Myspace – it doesn't seem like a very good deal for Yahoo.

Sources: Times London, SeekingAlpha,  WatchMojoBlog

Disclosures and Confessions:  I do not own Newscorp (NWS).  At a p/e it seems expensive for a media property at this point. However, I'd be happy to buy it if it got cheap enough.  I think that at this point, my TV broadcasting exposure is part of my GE position.  I do own Yahoo.

If the Yahoo shares rise above $35 I'm likely to start selling.  I'm short Jan 2008 35 strike calls against half my position of YHOO and am also short Jan 2008 30 strike puts.

I like Yahoo!.  For years MyYahoo.com has been my browser startup page; I pay to use Yahoo enhanced email; I have over 2500 photos on flickr ; I find Yahoo finance to be almost as good as Bloomberg but without the $1800 a month price tag; I have even been using Yahoo's search recently and find it so greatly improved that I don't need Google as much, I have registered websites using Yahoo.