Microsoft CEO tries to sell analysts on Yahoo deal

REDMOND, WASHINGTON: Microsoft Corp CEO Steve Ballmer is trying to improve Yahoo Inc investors' opinions of the companies' search-advertising partnership.

Yahoo's shares fell 12 per cent on Wednesday and continued dropping on Thursday. Ballmer told a meeting of financial analysts that he doesn't understand why, saying, "Nobody gets it."

The CEO says investors should be happy with a deal that erases Yahoo's search costs but lets it keep most of the revenue from advertising sold alongside search results on its Web site.

Ballmer also says combining the two companies' search traffic will draw more advertisers.

Microsoft shares were up 1.1 per cent at $24.07 in midday trading on Thursday.