Microsoft will pursue independent paths as it figures out how to compete with Google in the aftermath of its losed out bid for Yahoo. Speaking at a press conference in Tokyo, Chairman Bill Gates said Microsoft is committed to making its own advances in search and online advertising.

“We will prepare the advances that give society the great choice there,” he said.

While not ruling out deals with other top-tier players, Gates emphasized the current plan is to build new capabilities internally. “The key decisions on (other acquisitions) will be made by Microsoft CEO Steve Ballmer, who took a look at Yahoo and decided that, on our own, he likes the stuff that we’re doing,” Gates said. “I wouldn’t rule out some partnerships, but we don’t have anything imminent there.”

Deal Could Return

Despite Ballmer’s decision to walk away from a Yahoo takeover and Gates’ supportive comments, many analysts think Microsoft will be back later that summer

whether Yahoo’s stock price slides to pre-offer levels.

“If Yahoo misses its forecasts and the stock takes a hit, Microsoft would definitely look to step back in,” Ross Sandler, an analyst with RBC Capital Markets, told the San Franciso Chronicle.

While that may be, Gates’ comments likely reflect the thinking in Redmond, said Tim Bajarin, principal analyst with Creative Strategies, in an e-mail. “I believe Microsoft learned a lot through that Yahoo bid and most likely ended up giving a great deal of thought about what they need to do to compete whether the Yahoo deal did not go through,” he said. “I think Gates’ comments reflect that and at the moment they seem prepared to go it alone.”

Even so, “you cannot rule out the potential of Microsoft at some point entertaining another Yahoo bid whether their stock and market value goes down and they could get it…

Orginal post by Top Tech News