Murdoch On Yahoo: Microsoft Will Walk Away, Deal With Us Unlikely

In the background throughout Microsoft’s (NSDQ: MSFT) neverending Yahoo courtship has been the News Corp (NYSE: NWS) factor. Yahoo ran to Google (NSDQ: GOOG) to avoid an MS tie-up first time ’round; could it also seek solace in Rupert Murdoch’s arms? It’s “very unlikely”, Rupe said (via Reuters) at Allen & Co’s Sun Valley shindig. So maybe Ballmer will triumph after all? Nope: “There won’t be a deal. There’s bad personal feelings. In six months, (Microsoft) will walk away.” He should know; along the way, News Corp has held talks on both options – tying Yahoo to its MySpace, and helping Microsoft buy Yahoo (NSDQ: YHOO). The CEOs aren’t the only ones with animosity; Murdoch said of Gordon Crawford, SVP of Capital Research which holds 11.4 percent of YHOO and six of MSFT: “He’s pissed he didn’t get $33. He would have taken it in a flash.” It may be an idyllic hillside retreat, but Jerry Yang (via Reuters) says he’s unlikely to kick back with Microsoft representatives in Sun Valley.