Microsoft walks away from Yahoo! – now what?

As mentioned before I’ve been fascinated by the play by play evolution of the attempted takeover of Yahoo! by Microsoft. A few days ago I started having a feeling that the deal will not go through. Even when the rumors of a higher bid started surfacing I still didn’t believe the deal would happen. And today Microsoft announced that it withdraws its offer!

I think that’s good longer term for Yahoo! even though it will hurt the stock in the short term. It might have actually helped rallying the troops behind Yahoo! even though we lost a bunch of good employees. It’s now up to the leadership to send strong signals to the employees asap and get them fired up.

Steve Ballmer seems to be very nervous about the recent (partial) outsourcing of search monetization to Google and has included a few remarks on that topic. I’m surprised Valleywag didn’t point out that these bullets were directly addressed to regulators rather than Yahoo!.

It’ll be an interesting Monday. For sure.