Google has pulled out of its advertising deal with Yahoo, citing ongoing concerns from the US Justice Department – but it could be too late for Yahoo to expect a renewed offer from Microsoft.
Earlier this week, Google decided not to face the protracted legal battle that would have occured if it went ahead with the deal.
Initially, analysts thought the move would re-open the failed talks with Microsoft over either a full Yahoo buy-out or a deal to combine the two companies' search advertising businesses.
In February, Microsoft offered $47,5-billion for Yahoo; and later put in a $9-billion bid for the search advertising business. Yahoo rejected both offers, and its market value is currently about $19,5-billion.
Yahoo is probably hoping that Microsoft will renew its interest, but Microsoft's Steve Ballmer has poured cold water on that hope.
According to a report in the Sydney Morning Herald, Ballmer says Microsoft has moved on since the Yahoo bid failed.
However, he didn't rule out the possibility of a partnership in the search advertising market.0611yaho