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Google's chief executive officer has said an independent Yahoo! allows for better competition, according to reports.

Eric Schmidt apparently commented that he felt Microsoft's offer for Yahoo! was "anti-competitive" as soon as it was made earlier in the year.

He apparently stated there is greater competition in areas such as search and advertising markets in which Yahoo! is a leader.

The Financial Times suggests the timing of the intervention is "highly significant" because Yahoo! is currently under great pressure, with Microsoft "indicating that it will not bid for the company unless there is a change in the board make-up".

Meanwhile, Reuters says Mr Schmidt has said his own company's relationship with the media industry has improved over the last year, even though Google is still facing a copyright infringement suit filed by MTV Networks owners Viacom.

The Brand Republic website today reports Rupert Murdoch has predicted Microsoft will fail in its pursuit of Yahoo, while stating it is "very unlikely" his own company will be involved in any Yahoo deal.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent)