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May 04 2008 12:00am EDT

What's Next for Microsoft and Yahoo?

Microsoft-Yahoo. Ahhh. What could have been.

Well, since it won't be, technology websites began handicapping what happens next and trying to figure out what went wrong between Steve and Jerry.

Microsoft's Plan B? PaidContent's Rafat Ali says it could be a bid for Facebook. Or AOL. Or a piece of Barry Diller's IAC.

Not wrapping up Yahoo could mean the end of Steve Ballmer's reign at Microsoft, according to Valleywag, adding its voice to the Bye-Bye Steve chorus.

Kara Swisher on All Things Digital looks at the unholy kinship Yahoo will now have with Google (with the help of a great Twilight Zone video clip).

Barry Ritholz posted a stock board spoof about the Fed bailing out Yahoo! shareholders.

Come Monday morning, Yahoo shareholders, already angry, will watch whatever gains they saw from the Ballmer bid eviscerated, says Paul Kedrosky on Infectious Greed.

by Daniel Colarusso


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