News Corp not in talks with MS, AOL, Yahoo

NEW YORK, USA: Rupert Murdoch's News Corp has opted out of the current round of Internet consolidation for now, even as Yahoo Inc investors pine for a white knight after Microsoft Corp dropped its bid.

The media conglomerate is not in deal talks with Yahoo, Microsoft or Time Warner Inc's AOL, top News Corp executives said on Wednesday, though they did not rule out approaches down the line.

"We will always look at strategic options, but we feel very comfortable with our current positioning on the web," News Corp COO Peter Chernin said on a quarterly earnings call. "We are not in discussions with

Microsoft."

Asked if News Corp was holding ongoing discussions with Yahoo or AOL, Chernin said, "I have not had a conversation with Yahoo or AOL in a couple of weeks."

"Nor have I," added Murdoch, News Corp's chief executive.

The comments appear to eliminate News Corp as an immediate suitor for Yahoo, which is under pressure to come up with alternatives after Microsoft stunned the market by abruptly abandoning a $47.5 billion bid to buy the web pioneer on Saturday.

Microsoft balked at Yahoo's asking price of $37 per share and was only willing to go up to $33 per share.

Shares of Yahoo plunged 15 per cent on Monday, but have since rallied on hopes the two sides could return to the negotiating table and on expectations that Yahoo could announce a search advertising deal with Google Inc.

The fallout of the Microsoft bid is seen making AOL a more attractive partner for either Yahoo or Microsoft, analysts say.

Some even speculate that News Corp may want to combine MySpace with AOL, as Internet companies jostle to take on dominant Google.

Sources familiar with the matter said in April that News Corp was considering joining Microsoft's bid for Yahoo, as well as talking to Yahoo by itself.

Newsday deal “in hand”



While Murdoch did not appear to be actively pursuing Internet deals, he said he was confident his company would win the bidding for Tribune Co's Newsday newspaper, which serves the Long Island region of New York.

News Corp bid $580 million to buy Newsday, similar to that of Daily News owner Mortimer Zuckerman, but less than the $650 million bid from cable operator

Cablevision Systems Corp, sources familiar with the matter say.

"I don't think Cablevision will prevail," Murdoch said, responding to a question about why he has not raised his bid, which he characterized as "competitively priced."

"Just be patient for a couple of days ... We're certainly not in the business of getting into an auction here," he said, adding that Newsday would add about $100 million in annual cash flow to News Corp.

"We're hoping to wrap it up within the next week. We think everything is in hand," he said.

The 77-year-old media tycoon, who built News Corp from a pair of Australian newspapers into a global news and entertainment empire, realized a career-long ambition to buy Wall Street Journal publisher Dow Jones & Co last year.

If the Newsday acquisition is successful, Murdoch envisioned keeping Newsday apart from his other New York region paper, the New York Post, as separate papers that share printing and distribution resources.

"There's a lot we can do together," Murdoch said.