Microsoft Speaks, Yahoo Jumps (or at Least Its Stock Price Does)

An off-the-cuff remark by Microsoft (MSFT) CEO Steve Ballmer this morning set Yahoo’s stock soaring more than 15% to $13.73, adding well over $3 billion in market cap to the struggling company.

Speaking at the Gartner ITXpo, Ballmer reportedly said a Microsoft acquisition of Yahoo (presumably he’s talking about a full buyout, not the repeatedly rejected search deal) would still “make sense economically” for both companies' shareholders.

But he also cautioned that Yahoo is no longer worth the $33 per share originally offered: “Ballmer said that even with the recent drop in Yahoo’s share price, the company 'probably thinks it's still worth at least as much today,' as when Microsoft made its offer.”

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