Microsoft Corp is not looking to make a bid to buy Yahoo Inc but the company was in talks to make other types of deals with Yahoo, Microsoft Chief Executive Steve Ballmer said.

"We are not bidding to buy Yahoo," Ballmer said at the launch of Microsoft's new research and development centre in Israel.

"Yet, we are trying to have discussions about deals with Yahoo that might create value but not a whole acquisition of the company," he said without elaborating further.

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