Rupert Murdoch's NewsCorp has withdrawn its bid to buy the New York area newspaper Newsday.

With the media giant out of the picture, Cablevision will be the likely victor.

Cablevision, which operates cable television, phone and broadband services, offered US$650 million for Newsday, is topping equal bids of US$580 million dollars by NewsCorp and New York Daily News owner Mort Zuckerman.

Cablevision's offer to buy Newsday is expected to face fewer regulatory hurdles than either Murdoch or Zuckerman, who both own many other news publications.