That’s the headline of Jerry Yang’s post at Yodel Anecdotal discussing Yahoo’s (NSDQ: YHOO) future now that Microsoft has withdrawn its offer. If you’re looking for anything meaty, like indication of a fresh deal with another party, then don’t bother looking there. Instead, there’s some talk about Buzz, OneSearch and the company’s new social efforts. In the short term, the market knows that none of this equals cash on the table from Microsoft (NSDQ: MSFT). Yahoo shares are opening down about 18.5 percent to $23.30 — at least that’s over 10 percent higher than what it was before Microsoft made its bid. As for Microsoft, it’s not seeing huge reaction, trading up about 2.3 percent. Google (NSDQ: GOOG) is trading up by a similar measure. Meanwhile, Alibaba.com, in which Yahoo is a large stakeholder, fell 5.9 percent, according to Bloomberg. An analyst quoted in the piece suggests it’s because the company will now miss out on potential synergies working with Microsoft, but this sounds like an over-reading of the market. A simpler answer could be fears that Yahoo will be pressured to unwind some of its China holdings.
– Mark May, Needham & Co: “In order to placate YHOO shareholders, management will need to respond with a transformational partnership or transaction, such as a far-reaching Google ad deal. However, it remains unclear if this deal alone will enable YHOO to hit the aggressive CY09 and CY10 projections it recently set forth, and we believe some large YHOO shareholders are unhappy with the prospect of outsourcing a meaningful portion of the company