News Corp says 'no' to Yahoo deal

Rupert Murdoch has ruled out a potential bid by News Corp for Yahoo, according to a report from Reuters.

Media giant News Corp was said to be in the running for Yahoo after the latter rejected the Microsoft acquisition bid last month, but Murdoch has apparently rejected a possible deal. "We're not going to get into a fight with Microsoft, which has a lot more money than us," he said, according to Reuters.

Yahoo turned down the unsolicited Microsoft $41.4bn takeover bid in January, saying it undervalued the company. To thwart Microsoft, Yahoo had been talking to News Corp about possibly combining MySpace.com and Yahoo, according to reports.

Time Warner has also held talks to combine its AOL Internet division with Yahoo, but no progress has been reported.