Microsoft says deal with Yahoo still makes sense

Thu Oct 16, 12:59 PM
NEW YORK (Reuters) - Shares of Yahoo Inc jumped 12 percent after Microsoft Corp Chief Executive Steve Ballmer reportedly said that a deal between the companies may still make economic sense for shareholders.
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(Reuters)

NEW YORK (Reuters) - Shares of Yahoo Inc jumped 12 percent after Microsoft Corp Chief Executive Steve Ballmer reportedly said that a deal between the companies may still make economic sense for shareholders.

According to a Bloomberg report, Ballmer told a Gartner Inc conference in Orlando, Florida, that while the companies may pursue a search partnership in the future, there are no discussions now.

A spokesman for Microsoft had no immediate comment.

Talks between Microsoft and Yahoo broke off in July after the Web company rejected Microsoft's proposal to buy its search business and enact a revenue-sharing partnership.

Yahoo had also rejected a full acquisition offer from Microsoft in May that was priced at $33 per share.

Since then, Yahoo shares have plunged to as low as $11.37. The stock rose $1.12, or 9.5 percent, to $12.87 in early afternoon trading on the Nasdaq. Microsoft shares were down .2 percent, or 6 cents, at $22.60.

(Reporting by Franklin Paul; editing by Gunna Dickson)