Microsoft and Yahoo! Go their Separate ways

While the long anticipated merger between Microsoft and Yahoo! was highlighted during the last three months, it has become official that the deal will not go through. The fallout between the two companies brought forth speculation of both companies’ futures. While some speculate that the fallout will cause Yahoo!’s stock to plummet (in fact, it has fallen 20% in the first day after the announcement), others believe that Microsoft will re-offer its deal in the coming months.

Yahoo! has already started its recovery from the lost deal in a potential partnership with Google.  If this partnership forms, Yahoo! will post Google ads on its search engines.  More importantly, Yahoo! and Google will have power of over 80 percent of the search market.