Wow, Microsoft Walks Away

I was blown away from yesterday's news of the status of Microsoft/Yahoo's bidding war. I have been predicting over the past few months that Yahoo would put aside its pride and see the benefits of a merge with Microsoft and succumb to its offer. Apparently, even after Microsoft raised its bid to $33 a share (which in itself was not was predicted) Yahoo's CEO Yang wouldn't accept less than $37. Come on, does $4/share make that much of a deal breaker? I guess it does enough for Yahoo to stubbornly hold ground and Microsoft to pout and withdraw its bid.

Some experts have speculated that this is just another one of Microsoft's tactics to have Yahoo eventually come crawling back. Others say, Yahoo is now scrambling to make a deal with Google despite its weakened negotiation leverage. The shareholders are fuming mad since most were more than happy to settle for Microsoft's $33/share offer. What is the fate of Yahoo? Whatever they decide to do, there's little chance they'll have the opportunity again to be in a respectful power of position as a major competitor.