Microsoft withdrawals bid for Yahoo, Google wins

In a press release from Microsoft yesterday, Steve Ballmer said that it officially withdrawals it's bid for the acquisition of Yahoo, and cites the deal with Google as the main contributing factor for his decision.

"In our view, such an arrangement with [Google] would make an acquisition of Yahoo! undesirable to us for a number of reasons" - Microsoft Press Release

Now that the dust is settling, we can see what kind of impact this withdrawal will have. As Larry Dignan says on BTL, Google is the big winner. Not only do they not have to worry about a combined Microhoo working together to destroy them, they could also get a lucrative ad deal with Yahoo!.

Before Ballmer withdrew his offer to purchase the company, Yahoo! did everything it could to try and derail the efforts of Microsoft. That included reaching out to Google, and asking them to try using AdWords on their own search engine. Mind you, this is still only a "test", and it could be subject to close scrutiny by regulators, but it is still looking pretty good for Google.