Murdoch casts doubt on Microsoft/Yahoo

Rupert Murdoch has cast doubt on a Microsoft/Yahoo deal

Rupert Murdoch does not believe there is any chance of Yahoo cutting a big deal with Microsoft.

The News Corporation head told reporters at a conference in Idaho that he did not see the two companies reaching a deal, regardless of who is in charge.

"There will not be a deal. There are bad feelings," Murdoch was quoted as saying by Reuters.

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

Microsoft finally gave up its pursuit in May after offering as much as $47.5bn for the internet pioneer.

Yahoo was left to defend itself from its own investors and inflate its own value sufficiently to justify turning down the deal.

A shareholder revolt, lead by investor Carl Icahn, is now threatening to replace Yahoo's board and chief executive 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, does not see a deal on the cards. "In six months, Microsoft will walk away," he told reporters.