Yahoo Shares Jump

Those of you watching those big search engine stock market deals, take a look at this latest development regarding Yahoo.

Microsoft Corp. chief Steve Ballmer signaled his openness to a deal with Yahoo Inc., sending Yahoo shares up as much as 15% on investor hopes that Microsoft's failed acquisition for the Internet search company might rematerialize.

After the comments touched off a surge in Yahoo shares, Microsoft tried to downplay its chief executive's remarks. "Our position hasn't changed," a Microsoft spokesman said in a statement. "Microsoft has no interest in acquiring Yahoo. There are no discussions between the companies."

Mr. Ballmer, speaking at a technology conference in Orlando on Thursday, said a deal with Yahoo "would make sense economically." It wasn't clear whether Mr. Ballmer was referring to a hypothetical acquisition of Yahoo by Microsoft or a more narrow agreement to acquire the company's search business.

Mr. Ballmer also cautioned in his speech that Microsoft, of Redmond, Wash., wasn't in any discussions with Yahoo about a deal and that Yahoo wished to remain independent.

A Yahoo spokesman declined to comment.

Yahoo shares gave up some of their early gains but were changing hands up 11%, or $1.31, at $13.06 in late afternoon trading on the Nasdaq Stock Market.

Microsoft earlier this year abandoned an unsolicited bid of $33-a-share to acquire its Internet rival. Yahoo's board rejected the offer, worth nearly $50 billion, as inadequate. Since then Yahoo shares have fallen to almost a third of Microsoft's offer price.