Rupert Murdoch, Tom Glocer support Microsoft-Yahoo merger

"I think they need each other," Glocer said at a digital media conference organized here by The Wall Street Journal. "I think it makes a lot of sense. One way or another, I'd be surprised if there wasn't some way to make that happen."

For his part, Murdoch said he could not understand why the deal fell through, but noted that Yahoo founder Jerry Yang is "emotional about his company."

"Microsoft came up with a price, which the vast majority of the shareholders said 'give me quick,' he managed to hold them off. And Microsoft, who is not used to buying big things, they backed off," he said.

"They will try to find some other way to do things, buy search," Rupert added.

Murdoch also said he would not be surprised by a deal between Yahoo and search giant Google, "but there is a huge regulatory risk for everybody."

Microsoft says it broke off takeover talks in late April after it upped its February 1 bid of 44.6 billion dollars by three billion dollars and Yahoo's board still wanted more.

(c)2008 AFP