Jerry Yang’s $233 Million High-Five

The difference between the value of Yang’s Yahoo shares on Friday’s close and the end of the market today, after investors had time to digest Microsoft’s walk-away, totalled $233 million. Ouch. Read more

From SAI

Still No Blu-ray for Xbox 360

Microsoft official to GamePro.com:

“As we have stated, we have no plans to introduce a Blu-ray drive for Xbox 360. Games are what drive consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available.”

From SAI

Ok, so now what?

Straight from the horse’s mouth…or at least from his PR handler…Jerry Yang’s blog post about the non-deal.

Yahoo is Friendless On Wall Street

From GigaOm

Jerry Yang, Yahoo’s CEO, this morning posted what can be described as an emotional blog post about the Microsoft-Yahoo buyout saga. He reinforces the points he has made all along: that Yahoo needs to execute, innovate and develop more focus. Good intentions, but apparently not many are buying it. You should read the comments in response to Yang’s post: a lot of angry people, including shareholders who think that the company should have sold out. (Kara is reporting some frustration in the executive ranks over the lost big opportunity.)

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Yahoo’s Dazed Shareholders Flail Around For “Plan B”–Here’s a Particularly Bad One

From SAI:

Now that Microsoft (MSFT) has called what everyone but a handful of folks on Yahoo’s board assumed was a bluff, Yahoo’s stunned shareholders are left with a $22 stock and vague hopes for “Plan B.”

Anyone have any compelling ideas for “Plan B”? If so, they haven’t told us. All the “Plan B” ideas we’ve heard–with the exception of the Google outsourcing deal–are boring at best. Legg Mason portfolio manager Bill Miller is one of the smartest people we know, and his “Plan B” is downright dumb.

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Is Microsoft Not Buying Yahoo! Good for Open Source?

OStatic thinks so:

After several months of discussion and speculation, the Microsoft-Yahoo buyout deal is apparently off. At least, that’s what both Microsoft and Yahoo announced over the weekend. There is some speculation that Microsoft CEO Steve Ballmer made his announcement in order to topple Yahoo’s share price, in order to make another offer at a lower price. But for now, Yahoo is saying that they have come out of this fight stronger and more focused than before. Does this mean that we will see a change in Yahoo’s commitment to open source?

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Google: Want To Watch TV? Watch Our Ad

An interesting patent application just made public and noticed by Techdirt: Google (GOOG), which is trying to break into the TV ad business, has some interesting ideas on how to make those ads extra-effective — force people to watch them.

From SAI

How Yahoo Blew The Microsoft Deal, Part 1

The most interesting story to emerge since Microsoft (MSFT) withdrew its bid for Yahoo (YHOO) is that the companies are disputing the circumstances of Microsoft’s $33 offer. This is important for three reasons:

1. It suggests that Yahoo knows that its insistence that Microsoft’s offer “substantially undervalued” the company won’t pacify (or persuade) burned Yahoo shareholders. Instead, the company appears to be saying “If only we had known they would really pay $33, we’d have acted differently.”
2. It suggests that Microsoft may have been looking for an excuse to walk–and that Yahoo misjudged this. This makes sense, given that Steve Ballmer appears to have soured on the combination.
3. It might lend credence to the theory that this is just another negotiating tactic by Microsoft–a card played in the hopes that Yahoo’s enraged shareholders will force the company into a deal. A source close to Microsoft does not think this is the case–and neither do we.

More at SAI

Yahoo shares fall 14 pct after Microsoft withdraws bid

SAN FRANCISCO (AP) — Yahoo shares fell 14 percent Monday as hopes for the once-dominant Internet icon dimmed following Microsoft’s withdrawal of a $47.5 billion takeover bid.

The sell-off wiped out nearly half the gain in Yahoo Inc.’s stock price since Microsoft Corp. made its initial offer on Jan. 31 in an effort to challenge online advertising and search leader Google Inc. The downturn left Yahoo’s market value about $13 billion below Microsoft’s last offer.

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AdRants to Microsoft & Yahoo! – “Whatever, man”

Talk about an emotional roller coaster. Discussions between heads of Microsoft and Yahoo on Saturday concluded with the two companies deciding they don’t mesh well after all.

After company insiders divulged Microsoft and Yahoo were in decidedly harmonious merger talks, Steve Ballmer has formally withdrawn his bid. There will be no board ousting and no bid to meet Yahoo’s lofty expectations of $37 per share.

More at AdRants