Microsoft's Gates says 'key decisions' following withdrawal of Yahoo bid up to CEO Ballmer, 1st Ld-Writethru, AS

Enlarge Photo Microsoft's Gates says 'key decisions' following withdrawal of Yahoo bid up to CEO Ballmer, 1st...

Thu, May 8 06:09 PM

SEOUL, South Korea (AP) _ Microsoft Chairman Bill Gates said Tuesday that "key decisions" following the company's withdrawal of a US$47.5 billion (30.7 billion) takeover bid for Yahoo will be made by CEO Steve Ballmer. Gates, on a brief trip to South Korea, was asked about the software maker's plans after the Yahoo bid fell apart, including whether Microsoft would pursue another deal of the same size elsewhere.

Possibilities include large Internet companies like Time Warner Inc.'s AOL and News Corp.

's MySpace and promising startups like Facebook Inc. and LinkedIn Corp.

Microsoft already owns a 1.6 percent stake in Facebook, the second-largest social network behind MySpace. "Well, the key decisions on that will be made by Microsoft CEO Steven Ballmer, who took a look at Yahoo and decided that on our own he likes the stuff that we're doing," Gates said, according to a pool report.

"We need to show the innovation and it's a very competitive space," he added. "I wouldn't rule out some partnerships, but we don't have anything imminent there.

" Microsoft Corp. made its unsolicited bid for Yahoo Inc.

in hopes of challenging online advertising and search leader Google Inc. Last-ditch talks between Yahoo and Microsoft failed over the weekend, leading Microsoft to walk away from a deal Saturday.

Microsoft's intense pursuit of Yahoo is widely seen as an acknowledgment of weaknesses in Microsoft's solo Web search and advertising strategy, and the software maker now needs to prove it can innovate without Yahoo as a partner. Gates made the remarks after a meeting and dinner with South Korean President Lee Myung-bak.

Press access at the presidential Blue House was limited. The Microsoft co-founder he said it was his first visit to South Korea since 2001.

RECOMMEND THIS STORY