(Adds Yahoo share fall)
By Jonathan Standing
SYDNEY Nov 7 Microsoft Corp (MSFT.O) Chief
Executive Steve Ballmer dismissed speculation the software
giant might still be interested in buying Yahoo Inc YHOO.O,
sending shares of the Internet company down 14 percent.
"We made an offer, we made another offer ... We moved on,"
Ballmer told a business luncheon in Sydney on Friday, when
asked for the company's plans after a planned Web search
advertising partnership between Yahoo and Google Inc (GOOG.O)
fell through this week.
"We tried at one point to do a partnership around search
... and that didn't work either, and we moved on and they moved
on. We are not interested in going back and re-looking at an
acquisition. I don't know why they would be either, frankly,"
He added that he thought there were still opportunities for
some kind of partnership around search.
Ballmer's comments came two days after Yahoo CEO Jerry Yang
told an Internet conference in San Francisco that he believed a
deal with Yahoo was still the best option for Microsoft.
[ID:nN05361782] Both companies lag Google in the Web search
Shares of Yahoo surged earlier this week on speculation
that it and Microsoft were in advanced talks, after Google
pulled out of the search ad deal with Yahoo. Yahoo officials
later said the rumours were untrue.
Microsoft abandoned an unsolicited $47.5 billion takeover
bid for Yahoo in May, after the Internet company had rejected
its $33-per-share offer as too low.
In June, Google and Yahoo announced their planned search ad
partnership, which Yahoo had struck as a way of fending off
The two delayed implementation to allow the U.S. Justice
Department to review the deal, but Google this week withdrew
from the pact rather than face a protracted legal fight after
antitrust regulators had concerns.
Yahoo shares fell $2.05 to $11.91 in morning trading on the
Nasdaq, while Microsoft shares were up 1.92 percent at $21.28.
(Additional reporting by Tiffany Wu in New York; Editing by
Mark Bendeich and John Wallace)