Microsoft CEO still open to partnership with Yahoo

By Cyril Altmeyer

CANNES, France (Reuters) - Microsoft Corp, the world's largest software group, is still open to a partnership with search engine giant Yahoo Inc, Chief Executive Steve Ballmer said on Wednesday.

"We remain open to a partnership with Yahoo," Ballmer told a seminar at the Cannes Lion 2009 advertising festival.

Asked if a deal could be sealed in the next year, he said: "Who knows?"

Ballmer did not give further details.

Microsoft offered to pay up to $47.5 billion for Yahoo early last year, but was rebuffed by Yahoo's former leadership.

There has been talk of a partnership between Microsoft and Yahoo in recent months, but no deal has emerged. Microsoft is also trying to challenge Google Inc with its own new search engine called Bing.

Ballmer also gave a cautious view over the prospects for the world economy, which has been hit by the financial crisis that arose from bank losses on home loans and complex debt instruments.

"I don't think we're in a recession," said Ballmer.