Murdoch enters Microsoft/Yahoo fray

Rupert Murdoch has left open the possibility of teaming up with Microsoft on a joint bid to buy Yahoo, a day ahead of Yahoo's quarterly financial report, according to reports from Reuters.

Speaking before the US Atlantic Council, he said, "I certainly cannot afford to bid against Microsoft." But in response to a reporter's question about the possibility of a joint bid for Yahoo, he said, "Depends on the deal."

According to the report, The 77-year-old media mogul remarked about Google's influence in the advertising world asking, "Is Google really going to get control of the advertising world, and should Microsoft be supported in their attempt to try and stop that?"

Yahoo is expected to report its first quarter results on today. Strong results could force Microsoft to raise its estimated £22.5bn offer, analysts have said.

Yahoo has until Saturday to respond to Microsoft's offer, after which Microsoft has said it would launch a proxy battle to unseat Yahoo's board.