The Microsoft/Yahoo deal is officially dead, says Yahoo. According to a recent statement, discussions between the two companies officially concluded
after Yahoo turned down offers for multiple deals, including one that would see Microsoft encompass only a partial ownership over Yahoo rather than a total buyout.
The company claims that Microsoft itself is also no longer interested in a full buyout deal, but may still be pursuing acquiring the search aspect of the company. According to them, with Microsoft out of the picture it leaves them open to dealing with Google. A Google buyout of Yahoo seems unlikely, considering that both companies would face numerous antitrust issues and Microsoft would have a fit if such discussions began. A partial agreement of some sort does seem possible, if not imminent. There is talk of Yahoo using Google for certain services, such as a prominent Yahoo investor pushing for Yahoo to use Google for search advertising services.