Australian business mogul Rupert Murdoch has refused to rule out a possible deal with Microsoft over search engine provider Yahoo!.Yahoo! has until Saturday April 26th until Microsoft demands a formal response to its takeover bid.
Speaking to reporters after a speech he gave at the Atlantic Council, Mr Murdoch stated that he would not challenge a Microsoft bid for Yahoo!.
He said: "I can't afford that. I certainly can't afford to bid against Microsoft, least of all for Yahoo!."
However, the 77-year-old added that he had not ruled out teaming up with Microsoft on a bid for Yahoo!, saying such an agreement "would depend on the deal".
The News Corporation chairman went on to cite competition between Yahoo! and rival search engine provider Google as a significant factor in a deal.
He said: "There's a very interesting dynamic going on there in that world where Google is going forward, marching forward, with tremendous momentum.
"It presents a lot of questions to everybody, whether they're ordinary marketers or advertising agencies. Are they being cut off? Is Google really going to get control of the advertising world and should Microsoft be supportive in [an attempt] to try and stop that - and do they have the capacity to do so?"
Speculation concerning a possible alliance between Mr Murdoch and Microsoft over the Yahoo! takeover has been circulating for some time.
Indeed, earlier this month, a source close to the matter told the New York Times that the Australian businessman's News Corporation was discussing how it could back up Microsoft's bid for Yahoo!.
