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Microsoft CFO: Yahoo Deal Is No Panacea

The back-and-forth between Microsoft and Yahoo executives over a possible search deal continues, with Microsoft CFO Chris Liddell admitting at an industry conference on Thursday that Yahoo's search business wouldn't be the "silver bullet" that fixes its Web business. "Yahoo doesn't have the magic solution," Liddell said. "No one should think it will transform the industry."

Liddell also noted that Microsoft's Web division had been disappointing, and that a number of fixes would be considered. "No one inside Microsoft says we've done as well (at online) as we should have," he said (via Silicon Alley Insider) . "We have to have a plan that excludes Yahoo. We need to try different things like cashback. We need more distribution deals. We need to think about a new brand. We need to do all these things. With respect to Yahoo, it's a good increase (in market share), but it won't solve all these issues."

Liddell's comments come just a day after Yahoo CFO Blake Jorgensen said the Web giant would consider a search deal. Later on Thursday, Yahoo announced Jorgensen's departure. For now, Liddell said, Microsoft assumes that no deal is happening. He added that the software giant could issue $1 to $3 billion worth of debt at some point in the next six months.

Read the whole story at Bloomberg News/Silicon Alley Insider »

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