Yahoo! doesn't need Microsoft deal: CEO

"Yahoo! doesn't have to do anything with Microsoft about anything," Bartz said at a conference of technology analysts.

"Yahoo! actually has a bright, bright future, probably cleaner and simpler future without thinking there's any Microsoft connection," she said. "We'd be better off if we'd never heard the word Microsoft.

"Forget about the Microsoft stuff, it's honestly not that relevant," she said.

Microsoft tried last year to buy Yahoo! for USD 47.5 billion in a vain effort to merge online resources to better battle Google, which rules more than 60 per cent of the lucrative US online search market.

Yahoo!'s share of the market is about 20 per cent and Microsoft trails with slightly more than eight per cent, according to April figures from industry tracking firms.

Microsoft chief executive Steve Ballmer has repeatedly expressed interest in a deal with Yahoo! but Bartz said that too much attention was being paid to the issue and Yahoo! was doing fine on its own.