As with any big deal there comes a lot of risk.  Now that the impending deal won’t get done what is next?  Microsoft had a better BATNA (better alternative to a negoitated agreement).  We will find out what that is in the coming weeks and months.  Look for Microsoft to aggressively go after the mobile space since that is where all of the eyeballs are nowadays.   Maybe Microsoft will actually start innovating or acquiring.  Look for Yahoo to lick their wounds and be under a financial microscope.  Look for possible infighting between management and investors at Yahoo  Look for Yahoo’s stock to tank on Monday.

Google got what they wanted not having a Microsoft Yahoo merger.  This still leaves Google is a very strong position.  And they still have to compete with Microsoft flush with cash.  I personally think that Microsoft would have had a very difficult time digesting Yahoo, kind of like the way the Time Warner AOL merger/reverse merger went down…..really no clear winners.  So instead of picking up the "biggest" fish out there in Yahoo! Microsoft will probably go after smaller media/search plays if they still feel the money in their pocket is burning a hole in it.

My question to any of us reading this.  How many of us clicked on a banner and bought something or gave our personal information last month?  Probably not a lot.  So I expect someone to figure out a better way to make the ads more relevant.  Folks like RubiconProject are trying but with all of the ads that are being served how come ~99% are not relevant enough to be clicked on?