Microsoft Still Has Feelings for Yahoo!

Seattle CEO has a thing for Sunnyvale's search business

By Jackson West
|  Thursday, Mar 19, 2009  |  Updated 1:30 PM PDT
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Microsoft Still Has Feelings for Yahoo!

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That sound you hear? Crickets.

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Microsoft CEO Steve Ballmer told an audience in New York today that his company is still interested in buying Yahoo's search business.

The public display of affection is the latest overture in the Redmond, Washington's long courtship of a deal.

Last year Microsoft offered $47.5 billion to buy Yahoo, but was turned down by co-founder and then-CEO Jerry Yang.

Since then, Carol Bartz has taken over as CEO at Yahoo.

Microsoft has been trying to steal some search business away from Google, and the lucrative advertising that comes with it.

But this latest announcement could just be a sign of desperation.

Ballmer has only met once with Bartz to offer congratulations and plea for a deal.

Meanwhile, Microsoft has been working on improvements to their own search technology, code named "Kumo."

But even if the two hook up, it may be too little, too late to stop the search steam roller from Mountain View.

Yahoo and Microsoft shares were up slightly after the announcement, but the fact remains hardly anyone is actually using their Web search products.

Jackson West worries about anyone using Windows Live search..

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