Rupert Murdoch has cast doubt on a Microsoft/Yahoo deal

Murdoch casts doubt on Microsoft/Yahoo

Media mogul says any new deal unlikely

Written by Shaun Nichols in San Francisco

vnunet.com, 12 Jul 2008

Rupert Murdoch does not believe there is any chance of Yahoo cutting a big deal with Microsoft.

The News Corporation head told reporters at a conference in Idaho that he did not see the two companies reaching a deal, regardless of who is in charge.

"There will not be a deal. There are bad feelings," Murdoch was quoted as saying by Reuters.

News Corp was at one time at the centre of a Yahoo rumour itself. The two companies were reportedly discussing a deal when Yahoo was desperately seeking a partner to thwart Microsoft's takeover bid.

Microsoft finally gave up its pursuit in May after offering as much as $47.5bn for the internet pioneer.

Yahoo was left to defend itself from its own investors and inflate its own value sufficiently to justify turning down the deal.

In six months, Microsoft will walk away

Rupert Murdoch News Corporation

A shareholder revolt, lead by investor Carl Icahn, is now threatening to replace Yahoo's board and chief executive with a group which would seek out a deal.

Microsoft has since said that it would be open to discussing a new deal, should Icahn's takeover bid prove successful.

Murdoch, however, does not see a deal on the cards. "In six months, Microsoft will walk away," he told reporters.