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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.
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Updated from 3:41 p.m. EST

Yahoo!

(YHOO)

shares were slipping Thursday after reports that new CEO

Carol Bartz

might be averse to an Internet search deal with

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

.

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

Google

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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 TheStreet.com.