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News Corp., parent of MySpace and other online properties, has emerged as a potential partner for Yahoo in its effort to thwart Microsoft's takeover bid. The Wall Street Journal and Associated Press, citing anonymous sources, are now confirming earlier TechCrunch and Silicon Alley Insider reports on partnership discussions between Yahoo and News Corp.

The Journal reports that News Corp. would get as much as a 20 percent stake in Yahoo under the possible deal. On News Corp.'s Feb. 4 conference call, Chairman Rupert Murdoch said the company was "definitely not going to make a bid for Yahoo," essentially ruling out a full acquisition, but not necessarily ruling out a partnership.

From the Journal's story today:

The deal would allow Yahoo to remain independent while giving News Corp. substantial control over a huge array of Internet properties and advertising opportunities. In addition to MySpace, News Corp. owns the videogame site IGN, movie-review aggregator Rotten Tomatoes, and other Web sites. WSJ.com and FoxNews.com would not be part of the online combination under discussion.

Meanwhile, Reuters reports that money manager Bob Olstein, owner of about 1 million Microsoft shares, is urging the company to refrain from raising its Yahoo bid.