Yahoo continues to slowly sink

Sometimes in business, you have to wonder if the ship called "the company" is on course, off course, or floundering aimlessly.

I don't know the answer to these questions, but some people make a living writing about these things. Some probably have some training and experience at understanding such things, so it is with that in mind I looked to see what the day after view is to microsoft pulling back its offer from Yahoo..

Shock and Awe: Microsoft Dumps Yahoo!

Wininfo

"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer," Ballmer said in public statement. "After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal."

Regardless of the reasons, the cessation of merger talks leaves both companies to deal with the perception of failure. Microsoft had never made such a financially risky or aggressive takeover bid, and the company repeatedly claimed it needed Yahoo!'s resources to help it "scale" to compete more effectively with Yahoo!. Meanwhile, Yahoo! is on a steady downward path, as clearly indicated by its willingness to outsource core technology to its biggest competitor. While it's unclear how or if Microsoft will improve its market share online, one thing is clear: Yahoo! is on the way out.

Reuters
Investors eye Yahoo's alternatives to Microsoft
Sunday May 4, 9:10 pm ET
Yahoo is likely to push for an advertising partnership with Web search leader Google Inc, sources familiar with the matter said. A tie-up with Google, seen as a big winner from the end of Microsoft-Yahoo talks, should help boost Yahoo's operating performance in the near term.

Yahoo has conducted tests with Google to outsource some of its search listings to its arch-rival. It has also held talks in tandem with AOL and Rupert Murdoch's News Corp.

"The real winner in all of this seems to be Google," said Canaccord Adams analyst Colin Gillis. "There's going to be no powerful number two" in the Web market, he said.

Ok, so Microsoft shares will go up, and Yahoo likely will go down, and Google off the chart. And thinking about AOL Yahoo makes me more queasy than the Microsoft Yahoo deal did

A totally different topic:

All day this song my dad loved to listen to has been in my head...