MSFT and Yahoo: What’s Next…

This walk away has thrown open some interesting opportunities for the gladiators in the coliseum of Web for the search supremacy.

Microsoft:
Now that MSFT has walked away from the deal, now that they have 45 Billion in their pocket plus the saved cost of integrating the combined entity, platforms and people, which they would have spent instantly, MSFT will be closely watched how they intend to fight all alone, all the more vigorously.

In the process, MSFT has also smartly weakened any possibility of Yahoo being bought out by anyone for a 47B price tag. Now they may even focus on moving quickly to 2nd spot with some other smaller acquisitions and deals.

Yahoo:
Now that Yahoo has proven beyond any doubt that they are worth 47 billion (42 B on the first offer + yesterday’s 5 B top up), particularly management has to answer Yahoo shareholders how they are worth the asking price of 52 billion and also detail their plans how they intend to keep that position.

All the eyes will be on their stock price on Monday and if drops considerably, then Yahoo might have to face the wrath of their shareholders and employees, who otherwise could have made money particularly in these difficult times.

Google:
This giant will be the happiest lot. Nothing has changed....

They can get on with their business, as the second and third in line competitors are at a far distance.

Had the deal gone through, the combined MSFT-Yahoo entity could have been a formidable competitor.

One has to wait and see how GOOG intends to proceed with their supportive actions and cross advertising deals with Yahoo. There could be lens on these dealings with Yahoo from the monopolistic angle.