Murdoch casts doubt on Microsoft/Yahoo

The head of the media giant told reporters at a conference in Idaho that he didn't see the two companies reaching a deal, regardless of who is in charge.

"There won't be a deal, there's bad feelings," Murdoch was quoted as saying by Reuters.

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

After offering a price of as much as US$47.5bn for the internet pioneer, Microsoft finally gave up its pursuit in May, and Yahoo was left to defend itself from its own investors and inflate its own value enough to justify turning down the deal.

The shareholder revolt, lead by investor Carl Icahn, is now threatening to replace Yahoo's board and chief executive officer Jerry Yang 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, doesn't see a deal in the cards.

"In six months, Microsoft will walk away," he told reporters.

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