News Corp has declined to fight for a stake in Yahoo, leaving the field open for Microsoft. 

Earlier reports speculated that News Corp could include MySpace in a deal with Yahoo. News Corp would have ended up with 20% of Yahoo.
However, Rupert Murdoch has come out and said he won't get into a fight with Microsoft over a piece of Yahoo.
"We're not going to get into a fight with Microsoft, which has a lot more money than us," he told investors yesterday.