NEW YORK (Bloomberg) — Microsoft Corp. chief executive officer Steve Ballmer said a deal with Yahoo! Inc. may still make economic sense for shareholders of both companies, pushing Yahoo stock up as much as 17 percent.

While the companies may pursue a search partnership in the future, there are no discussions now, Ballmer said today at a Gartner Inc. conference in Orlando, Florida.

Microsoft, the world's largest software maker, offered as much as $47.5 billion for Yahoo this year to close the gap with Google Inc. in Internet advertising. After Yahoo asked for a higher price, Microsoft walked away from the bid in May. Yahoo shares have fallen 61 percent from their peak in February.

"It's clear that Yahoo did not want to sell the company. It didn't want to sell when we offered $33," Ballmer said. "Perhaps there will be continuing opportunities to" talk about a search partnership in the future, he said.

Chief financial officer Chris Liddell said in July and reiterated in September that Yahoo is a "declining asset" and the chances of a full acquisition are "negligible." Microsoft and Yahoo sparred over what happened during the negotiations, with Microsoft accusing Yahoo at one point of "attempting to rewrite history."

Yahoo spokeswoman Tracy Schmaler didn't immediately return calls seeking about Ballmer's remarks today. Microsoft spokesman Frank Shaw had no immediate comment.

Ballmer is "trying to set the stage for a lower valuation" on Yahoo, said Colin Gillis, an analyst with Canaccord Adams in New York. He has a "hold" rating on Yahoo shares, which he doesn't own. "There's been a school of thought that's long said that a Microsoft-Yahoo deal would happen over time just because of the obvious synergies."

Microsoft would have used Sunnyvale, California-based Yahoo to bolster its Internet advertising business.