Two nights ago, Rupert Murdoch told The Observer that he went "a little too far" by declaring that his purchase of Newsday was a certainty, which he boldly told reporters and investors earlier in the week. This afternoon, he has withdrawn his offer.

The Wall Street Journal is reporting that Mr. Murdoch's News Corp. pulled out of the bidding after he "determined that it couldn't justify matching Cablevision's offer." Mr. Murdoch's bid was $580 million, while Cablevision, led by Charles and James Dolan, have reportedly bid $650 million. The only other remaining suitor is the Daily News' owner Mort Zuckerman who also bid $580 million.

The Journal is declaring that the Dolans are the "likely victor" in the Newsday sweepstakes.