Google Dumps Yahoo

Anti-trust objections have downed an $800-million-per-year potential deal between Google and Yahoo that would have seen Google provide ad services for some of Yahoo's search results. The deal was originally announced in June but has floundered since then, leaving Yahoo with twice-disgruntled shareholders - the Google deal was a bid to appease shareholders still miffed at the failed Microsoft takeover bid.

Google, meanwhile, says it has no interest in a protracted legal battle, which it deems distracting:

"That would be like trying to drive down the road of innovation with the parking brake on,"

Indeed. Never mind that Yahoo's innovative machine broke down several hundred miles ago - its $33 a share offer from Microsoft now looks positively cozy compared to yesterday's closing prices of $14.

Iconic Yahoo investor and sentence-rhymer Carl Icahn has even suggested that the entire Yahoo board be sacked in a bid to revive the Microsoft deal, even though Microsoft has publicly stated its abject lack of interest. Then again, now that Yahoo is worth less than half of Microsoft's initial offer, things may change... after all, who can resist the bargain bin?

Google abandons deal with Yahoo [BBC]