Microsoft is not interested in buying any hardware companies, Chief Executive Steve Ballmer said in Cairo on Wednesday.
On Monday, software rival Oracle Corp unveiled a plan to buy Sun Microsystems Inc for more than $7 billion.
I have no idea why a software company would buy a hardware company. We don't want to buy any hardware companies, Ballmer told the American Chamber of Commerce in the Egyptian capital.
Ballmer said Microsoft was also not interested in buying Yahoo.
Microsoft is in talks with Yahoo Inc on an Internet search advertising partnership that could help it turn around its money-losing online business and challenge rival Google's dominant position.
Ballmer said Microsoft would seek to capture market share from Google in the search area through innovation.
You'll see us innovating in search, he said.
(Reporting by Will Rasmussen; writing by Aziz El-Kaissouni, editing by Will Waterman)