Microsoft CEO pours cold water on Yahoo interest

SYDNEY, AUSTRALIA: Software giant Microsoft Corp on Friday dismissed speculation it might still be interested in a takeover of Internet firm Yahoo Inc.

"We made an offer, we made another offer...We have moved on," Microsoft chief executive Steve Ballmer told a luncheon when asked for the firm's plans after a partnership between Yahoo and Google Inc fell through this week.

Microsoft had abandoned an unsolicited $47.5 billion bid for Yahoo in May.

Ballmer's comments come two days after Yahoo shares surged on after a rumour posted on a blog said Yahoo and Microsoft were in advanced talks to sell the company for between $17 and $19 a share. The blog also reported that Yahoo's chief executive Jerry Yang would step down from his CEO position.

Yahoo officials later said the report was untrue.

Yahoo shares ended Thursday at $13.96, far below the $31-a-share Microsoft originally offered, and the company has come under severe criticism from investors for turning down the software giant's offer.

Earlier this week, Yahoo's Yang said he believed a deal between Microsoft and Yahoo was still the best option for the software company.