Feb. 25 (Bloomberg) -- Yahoo! Inc., which rejected a Microsoft Corp. buyout offer last year, hasn’t ruled out striking a deal with the company to bolster its Internet search engine, Chief Financial Officer Blake Jorgensen said.

Any agreement would have to maximize the unit’s value, Jorgensen said today at an investor conference. He added that it would be extremely difficult to separate Yahoo’s search business from the rest of the company, though not impossible. Under a partnership, Yahoo should continue to have full access to the search-engine data, which the company uses to make its display advertising more effective, he said.

“We want to do it for the right reasons and the right economics,” Jorgensen said.

Microsoft Chief Executive Officer Steve Ballmer raised the prospect of a search deal with Yahoo yesterday, saying the partnership would help both companies compete against market leader Google Inc. Ballmer signaled that he would be willing to work with Carol Bartz, Yahoo’s new CEO, to reach an agreement.

Yahoo, based in Sunnyvale, California, climbed 24 cents, or 1.9 percent, to $12.75 in extended trading today. Redmond, Washington-based Microsoft, little changed in late trading, closed at $16.96 on the Nasdaq Stock Market.

‘Gut Instinct’

Bartz is bringing a more disciplined approach to how Yahoo operates, Jorgensen said during the presentation.

“She’s very decisive,” he said. “She can operate with a gut instinct. She’s very interested in simplifying the company and focusing Yahoo on some of its core strengths.”

She also doesn’t put up with careless behavior, he said.

“She is intolerant of anyone that is late to a meeting, and that is very different than the Yahoo way,” he said. “That will change the behavior of the company over time.”

Bartz struck a confident tone during her first conference call, just minutes after Yahoo announced her hiring in January.

“It’s no secret that Yahoo has faced challenges over the past year, but as I look around here today, I see a powerful global brand,” she said. “Let’s give this company some friggin’ breathing room.”

Later that month, she said she didn’t come to Yahoo to sell the company. At the same time, she didn’t rule out the possibility of a search deal.

Investors are watching Bartz closely to see whether she can revive growth at the company.

Yahoo’s last CEO, Jerry Yang, took over in 2007, pledging to “dramatically improve” performance. His changes didn’t restore sales growth, and the shares slid about 30 percent until Feb. 1, when Microsoft’s takeover bid become public. Microsoft dropped its offer later in the year.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

Last Updated: February 25, 2009 20:47 EST