New York, October 18 : Microsoft Corp Chief Executive Steve Ballmer said a Web search advertising deal with Yahoo Inc makes economic sense and may still be possible, though the two sides are not in any discussions. Shares of Yahoo jumped as much as 17 per cent as investors hoped Ballmer's comments could lead to the two sides returning to the negotiating table. But gains were pared back to about 12 per cent after Microsoft issued a statement saying it had no interest in buying Yahoo.
Talks between the two broke off in July after Yahoo rejected Microsoft's proposal to buy its search advertising business and enact a revenue-sharing partnership.
Yahoo had also rebuffed in May a full acquisition bid from Microsoft that was priced at $33 per share, or $47.5 billion. Instead, Yahoo signed a search advertising pact with Web leader Google Inc, which is being scrutinized by regulators.
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