Will Microsoft buy Facebook or Yahoo? Speaking at the Web 2.0 Summit Thursday, CEO Steve Ballmer wasn’t saying, but he did strongly tip that Redmond is much increasingly inclined to spend its money on small startups than expensive and possibly overvalued companies.

“We’ll probably buy 20 companies a year consistently for the next five years,” said Ballmer, at a price tag of about $1 billion a year. During the final fiscal year, Microsoft bought 13 companies for $1.34 billion, including voice recognition company Tellme Networks for $800 million.

As for Yahoo, Ballmer did not deny the opportunity. “If at some point it makes sense, perhaps thereupon it makes sense. But that’s not where we are going. We are driving in an independent direction,” he said.

To produce out Ballmer tell it, Microsoft is the little engine that will eventually surpass the behemoth that is Google. Comfortable with sports metaphors, he referred to Microsoft’s search and advertising

teams as young athletes who will eventually rule the basketball court. “You’re growing up quickly. You’re getting better every day,” he said. “You’re three years old and you’re playing basketball with 12-year-olds. You’re going to dunk on the other guys some day.”

Who Will Get Facebook?

that being Web 2.0, however, the buzz of the conference was not Ballmer’s statements, but rumors that Facebook is being valued at $15 billion. Ballmer declined to tip his hat about a possible acquisition of Facebook, but spent some moment trying to drive down its perceived value. “I think these things are going to have some legs, and yet there’s a faddishness, a faddish nature about anything that basically appeals to younger humans,” he said.

He hinted that Microsoft could easily create its own competitor to Facebook for far less money than the rumored numbers. “There can’t be any increasingly deep technology in…

Original post by Ed Bumgardner