And so the Microsoft-Yahoo dance begins again ... Microsoft CEO Steve Ballmer told analysts at a strategic update/mid-year outlook presentation today that he still wanted to pursue some sort of search deal with Yahoo. According to ZDNet, Ballmer wants to find a way for the two companies to “pool their resources” to take on Google; he said Microsoft (NSDQ: MSFT) was unlikely to gain search ground this year on its own. He said he understands investors want to see better results from Microsoft’s search and ad properties. “I don’t want to wind up being known as the Jerry Yang of this market in a different way,” Ballmer said. Ouch…

The pot-stirring comes amid Yahoo’s hunt for a new M&A exec, and despite CEO Carol Bartz’ insistence that the company will continue to fare well on its own. Microsoft’s shareholders didn’t seem to like the pitch though, as the WSJ notes that its stock sunk to its lowest price in 11 years following the presentation; Yahoo’s rose by 5 percent.

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