More than a month ago, Microsoft said they were withdrawing from their bid to buy Yahoo. At that time, I made some predictions of the fallout. Then both Microsoft and Yahoo said they were still “talking” and Carl Ichan stepped in and said he intended to initiate a proxy fight for the board of directors at Yahoo, he also sought to direct the current board to pursue the Microsoft merger.

Well, now both Microsoft and Yahoo are saying the deal is definitely off, no merger, no further discussions and Yahoo has inked a deal with Google. That really is the nail in the coffin because the only part of Yahoo of any value to Microsoft was the part Yahoo has now tied to Google’s hip.

So, the deal appears dead, maybe for good this time

The market seems to think so, Yahoo is dropping back to its intrinsic value near $22 a share and Microsoft stock is up this morning.