Microsoft (MSFT) Chief Executive Steve Ballmer told FOX Business Network the software behemoth won’t make another run at Yahoo (YHOO), despite having $20 billion in cash.

“An acquisition is a thing of the past,” said Ballmer in an interview with FOX Business Network’s Brian Sullivan. Ballmer said Microsoft could try to do a partnership with Yahoo and said the company is always on the look out for potential acquisition targets ,but isn’t known to make big deals. “In this environment cash is king,” said Ballmer.

Although Ballmer said it’s hard to say when the economic downturn will be over, he did say the technology market not matter what happens will be a large market and one that presents many opportunities for Microsoft.

“Its fair to say the economic turmoil which affects the economy at large certainly is affecting the IT industry both on the consumer side and business side,” noted Ballmer.  

Ballmer isn’t worried about rolling out the newest version of Windows in the current economic climate, arguing that people are still going to buy a lot of technology.

Ballmer said the new Windows 7, which he focused on during his first keynote on the eve of the Consumer Electronics Show will be launched in beta on Friday and will be available on new PCs within the year.

As for the announcement that Verizon (VZ) chose Microsoft to provide Internet search services for its mobile phones, Ballmer said it’s a “big deal.” The move on the part of Verizon is seen as a blow to both Yahoo (YHOO) and Google (GOOG).