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Yahoo! Falls on News of CEO's Deal Aversion

New CEO Carol Bartz told Yahoo! employees that her instinct was to hang on to the company's search business, according to reports.

Updated from 3:41 p.m. EST



shares were slipping Thursday after reports that new CEO

Carol Bartz

might be averse to an Internet search deal with


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Yahoo! shares closed down 6.5% to $11.61, while Microsoft closed up 0.8% to $19.24. The Nasdaq, meanwhile, ended up 1.5%.

According to the

Dow Jones Newswires

, Bartz told Yahoo! employees Wednesday that her instinct was to hang on to Yahoo!'s search business. The former

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executive said she had made no related decisions yet on the move, considered by many a crucial element in Yahoo!'s battle with


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for Internet dominance.

Bartz did say she'd met with Microsoft CEO Steve Ballmer since taking the helm at Yahoo! on Wednesday, according to

The Wall Street Journal

, but she was not forthcoming with details of that conversation.

Regardless of how she does it, Bartz has plenty of incentive to right Yahoo!'s ship. According to a regulatory filing, she will receive a $1 million salary, plus at least $18 million more in cash and stock during her first year in the job, and 5 million stock options.

Microsoft had its own set of woes to contend with Thursday after reports that it was considering

significant job cuts


This article was written by a staff member of