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In a series of interviews this week, Bill Gates has spoken positively about Microsoft's proposed Yahoo deal -- telling CNet News.com, for example, that the addition of Yahoo's engineers is why Microsoft believes the potential combination would be "powerful."

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But Gates hasn't always been so bullish on the concept. This past July, Sid Parakh of McAdams Wright Ragen in Seattle was among the analysts listening to Gates during an evening reception at the company's annual meeting with financial analysts. According to a note Parakh sent to clients the next day, the Microsoft chairman made a much different argument when asked about the possibility of buying Yahoo. An excerpt from Parakh's July 27 note:

Off-the-stage comments included (Gates') view that longer-term the company sees only two strong companies in the online advertising business in addition to clearly indicating that they did not see any value add in buying Yahoo, Inc.

A Microsoft representative declined to comment today when I asked about the apparent change in Gates' outlook on a Yahoo combination. However, it's worth examining the timing of his previous comments.

For example, we know now, based on Microsoft Chief Executive Steve Ballmer's letter last month to Yahoo's board, that Microsoft and Yahoo in late 2006 and early 2007 discussed "a broad range of ways" to work together -- including the possibility of a merger, which Yahoo turned down. So Gates might not have viewed a Yahoo deal as realistic at the time.

In addition, at the time of Gates' previous comments, Microsoft was enjoying an upswing in its search market share, thanks largely to queries generated by people playing Live Search Club games.

But that trend proved temporary.

"In the time that has gone by, Google has really surged ahead," Parakh said today when asked about his earlier report. "While Microsoft was trying to put resources into internal efforts, they weren't necessarily paying off, as is evident from the market share numbers, and that may have prompted them to revisit whether they should buy Yahoo or not."

As outlined here previously, Parakh happens to agree with Gates' previous outlook -- seeing little value for Microsoft in the proposed deal.