CEO Bartz Discusses Microhoo Prospects

An Internet search deal between Yahoo and Microsoft could provide important benefits in scale and yield as much as $700 million in cost savings, Yahoo CEO Carol Bartz said.

Bartz laid out more details about her views on a potential deal in a speech at an investor conference Wednesday, even as she stressed that Yahoo was not under any pressure to team up on search to compete against Google, which has more than 64 percent share of the U.S. search market.

“I personally think we’d be better off if we never heard the word Microsoft,” Bartz said at the Bank of America U.S. Technology conference.

The speech was the second recent comment by Bartz regarding a potential deal. Bartz told the audience at the All Things Digital conference last week that any deal for its search assets would require a partner with a “boatload” of money and the right technology.

The comments also come as Microsoft releases a new version of its search engine, dubbed Bing.

Bartz said Bing will give Microsoft some “uplift” in the search market, but will not fundamentally change the competitive dynamics in the search market.

“They’re not going to get scale through Bing. They’re going to get some temporary interest,” said Bartz.

Asked about how much money Yahoo could save through a deal combining its search assets with Microsoft, Bartz said the potential savings were “not much more” than $500 million to $700 million.