Microsoft hints some kind of deal with Yahoo still is possible
— -- Ballmer said there may be "continuing opportunities" to pursue a partnership for Internet-search advertising, but added that there are no discussions now.
On a day when the volatile stock market was on the rebound, Yahoo shares closed Thursday at $12.99, up $1.24; Microsoft closed at $24.19, up $1.53.
Earlier this year, Microsoft made a protracted attempt to acquire Yahoo, offering as much as $33 a share, or $47.5 billion. The software giant sought to combine its search advertising business with Yahoo's and close the gap on search giant Google.
Yahoo pressed for a higher price, until Microsoft walked away from the bid in May. Before Thursday, Yahoo's shares had fallen 61% from their peak in February, reaching $11.75.
"It's clear that Yahoo did not want to sell the company. It didn't want to sell when we offered $33," said Ballmer at a Gartner conference in Orlando. "They probably still think it's worth at least $33 today."
After walking away from the deal, Microsoft said it was exploring a transaction short of a full takeover. Microsoft and Yahoo sparred about what happened during the negotiations, with Microsoft accusing Yahoo at one point of "attempting to rewrite history."
Microsoft continues to seek to bolster its Internet advertising business. That industry will grow to $65 billion this year, according to IDC, a researcher in Framingham, Mass.
"Google is the best-financed, most ambitious company in the business," said Ballmer, 52. "It's really about getting good at advertising, because if we're good at advertising, we'll compete with them on anything in the consumer business."
Ballmer is "trying to set the stage for a lower valuation" on Yahoo, said Colin Gillis, a stock analyst at Canaccord Adams in New York who has a "hold" rating on Yahoo shares.
"I hope there's real strategy behind the comments, and they're not just casual," Gillis said.
