Murdoch won't take on Microsoft over Yahoo

Media magnate Rupert Murdoch has confirmed he is not going to get into a bidding war with Microsoft over Yahoo.

He did admit that his company, News Corp, has been in talks with yahoo over the possibility of combining Murdoch-owned MySpace and the company's other internet assets with Yahoo.

However, News Corp has opted to back down rather than take on the might of Microsoft.

Murdoch told investors at the annual Bear Stearns media conference: "We're not going to get into a fight with Microsoft, which has a lot more money than us".

Microsoft made an unsolicited $41.4 billion bid to buy Yahoo, which was rejected.

There has been no further movement since much to the frustration of Yahoo shareholders.