Yahoo! (YHOO) slipped 1% Wednesday afternoon after a Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report executive's comments dampened takeout speculation.

Microsoft chief advertising strategist Yusuf Mehdi told investors at a Goldman Sachs conference Wednesday that the Redmond, Wash., software giant already has all the pieces it needs to become a major player online.

Microsoft, which has lagged behind Yahoo! and


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when it comes to the Internet, agreed last week to acquire the online ad firm


( AQNT) for $6 billion in an effort to beef up its offerings.

The deal revived hope in some quarters for a long-speculated purchase of Yahoo! by Microsoft, as some analysts saw an indication that Microsoft was willing to pay top dollar to further its Internet efforts. Microsoft paid a premium of 85% for aQuantive.

Even with aQuantive, Microsoft remains a distant third when it comes to the popularity of its search engine. And it remains unclear if the comments were actually inspired by a widely perceived resistance to being acquired on Yahoo!'s part.

Microsoft rose 8 cents to $30.77.