Murdoch-Blocked?

I think that day has passed, but you never know.”

–News Corp. Chairman Rupert Murdoch comments on a possible MySpace-Yahoo alliance during last week’s earnings call.

Yeah, you never know.

You’d think that News Corp. (NWS) would be a little too busy with the integration of a certain other multibillion-dollar property to consider adding another one to its plate, but Chairman Rupert Murdoch, as we all know, is a man of healthy appetites.

So it’s not all that surprising to hear that News Corp. and Yahoo (YHOO) are discussing some kind of alliance that would allow the beleaguered Internet major to rebuff Microsoft’s hostile bid once and for all. Sources close to the companies tell The Wall Street Journal that under the terms of the deal being discussed, News Corp. (owner of this site) would take a 20% stake in Yahoo and combine it with MySpace and other News Corp.-owned online properties.