The software maker's chief executive, Steve Ballmer, told shareholders Wednesday that Microsoft is no longer interested in buying all of Yahoo!, but that the company would be "very open" to a search collaboration.
Yahoo spurned Microsoft's $47.5 billion takeover offer in May. It also later rejected Microsoft's bid to buy only its search engine. But co-founder Jerry Yang, who resisted those overtures, is now stepping down as Yahoo's CEO.
"Let me be clear," Ballmer told shareholders. "We are done with all acquisition discussions with Yahoo." Ballmer says the companies are not currently talking about a search deal, either.