Rupert Murdoch's News Corp. has withdrawn its bid to buy Tribune Co's Newsday newspaper, the Wall Street Journal reported on its website on Saturday, citing people familiar with the matter.

News Corp., which publishes the New York Post and The Wall Street Journal, was unwilling to raise its offer of $580 million for the newspaper to match or exceed the $650 million bid by Cablevision, the Journal said.

According to a company spokesman, the deal had become uneconomical.

New York Daily News owner Mortimer Zuckerman also bid $580 million for the newspaper but it wasn't immediately clear whether he would submit a higher offer. Meanwhile, Cablevision Systems Corp, a cable operator based on Long Island, has made a $650 million bid.