Microsoft: Large deals are conceivable

The market is already full of rumors about a possible deal between Microsoft and Yahoo. There are even reports that the software giant is considering acquiring Yahoo for a price tag of around USD 50 billion.

However, the two companies have yet not commented on these reports. Microsoft has however admitted that to stay competitive in the various markets they are in, large deals are conceivable.

Microsoft Chief Executive Steve Ballmer said in a statement: “We have not, by default, opted for acquisitions as part of our strategy … but we don’t count them out either. In general, though (we focus on) smaller deals, we are open to large acquisitions.”

He was speaking at the Software 2007 conference in Silicon Valley and said that Microsoft is focused on organic growth and sees acquisitions typically as a way to fill holes in its business strategy.

Ballmer however declined to comment directly on the reports of a possible deal with the internet giant Yahoo.

Both Microsoft and Yahoo are struggling to compete against the search engine giant Google which also dominates the online advertising market. Both of these companies want to be a bigger player in the advertising market but have failed to put a dent in Google’s market share.

Ballmer added: “I don’t think you should expect that most of our growth should come from buying large companies and taking costs out.”

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