Yahoo-Microsoft deal dead, again, but Yahoo-Google deal in the works

UPDATE:  Yahoo and Google announced an extended partnership, which helped stem the nose dive that was Yahoo’s stock today. The AP reports that the deal, if it pass what’s likely to be a rigorous review by U.S. antitrust regulators and lawmakers, really shapes up to be a win for primarily for Google. Google doesn’t

have to fend off a new, merged major competitor in Microhoo and it gets its hooks into Yahoo’s search business. Specifically, Yahoo intends to use Google’s superior search technology to display ads on its own Web site as well as those of its partners’ in the United States and Canada. Yahoo says the arrangement could boost its revenue by as much as $800 million during the first 12 months of the partnership.

But the shareholders got hosed and the Carl Icahn story and the fate of Yahoo’s board is scheduled to be determined at the company’s Aug. 1 annual meeting.

Earlier this morning The New York Times reported that the deal was dead — really, really dead. Not even wiggling a little. Retained from previous post: The Yahoo board is  expected to announce today or tomorrow that it will be moving forward with its advertising partnership with Google. Another round of talks between Yahoo leadership and Steve Ballmer had taken place on Sunday, the story says. Ballmer again said Microsoft was interested in buying only Yahoo’s search business and not the whole company. Yahoo’s board said no.

The best thing about this news for Microsoft enterprise shops is that this means $50 billion of Microsoft’s money, along with a lot of its executive leadership, will no longer be distracted by Yahoo.

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