News Corp not interested in Yahoo: source

NEW YORK (Reuters) - News Corp is not interested in bidding for Yahoo Inc, a News Corp source said on Friday.

Microsoft Corp on Friday offered to buy Yahoo for $31 a share, or about $44.6 billion, valuing the company at a 62 percent premium.

News Corp Chief Executive Rupert Murdoch held early discussions to combine News Corp's MySpace social network with Yahoo last year, but talks ended after Terry Semel stepped down as Yahoo CEO.

(Reporting by Kenneth Li, editing by Gerald E. McCormick)