Microsoft is set to pay News Corp. for exclusive rights to index their content online. Assuming that Google "plays nice" and vanishes all News Corp. content, does this work out well for Murdoch? Well, for that to happen, users would need to care where they get their news, not just whether it's relevant. If I go searching Google for news, as I do now, the only difference when News Corp. disappears is that they will never get any ad revenue.
There are plenty of other places I could end up besides the Lands of Murdoch (for instance, the taxpayer-funded ABC) so I don't see this as a foolproof way to force users to pay for News Corp. content. Rather, it's more like a foolproof way to cheat yourself out of advertising revenue in favour of an ultimately self-defeating lump sum.
If Murdoch knows that's what he's doing, then really he's trying to cash out of the news business while the getting is good, and Microsoft is buying in to temporarily spite Google. Then, once News Corp. crumbles, broke and obscure, everything goes back to normal except that Murdoch doesn't bother us any more. Who knew evil was self-implosive?
Mokalus of Borg
PS - It's probably not going to happen that way.
PPS - I guess we'll just wait and see.