Murdoch Backs Off Yahoo Interest
News Corp’s Rupert Murdoch possesses some deep pockets, but the prospect of emptying them to keep Microsoft away from Yahoo doesn’t appeal to the media magnate.
People who stay in power for a long time learn to pick their battles, and preferably fight on their own terms, slanted heavily in favor of themselves. Wrestling with Microsoft’s billions for a piece of Yahoo won’t be the bout that Murdoch chooses.
He told Reuters he planned to stay away from Microsoft’s attempt to take control of Yahoo, the world’s most heavily trafficked web property:
“We’re not going to get into a fight with Microsoft, which has a lot more money than us,” Murdoch told investors at the annual Bear Stearns media conference.
That probably leaves Time Warner as the only other potential ally to keep Yahoo out of Microsoft’s grasp. But with Microsoft rumored to be ready to pump in more cash to the deal to keep it at its original $44.6 billion valuation, Yahoo’s other negotiations and delaying tactics could be forestalling the inevitable.