• AFP , Tuesday, May 6, 2008 11:03 AM

The AFP said the non-Microhoo deal has been a win for Google on several fronts because Microsoft walking away from the deal won't allow the companies to return to service as normal. The software giant now has to continue searching for something that can give its flagging online services business a shot in the arm. Yahoo must also do something to keep its stock price from sliding any further-and the most likely near-term announcement is some kind of Google search partnership.

Meanwhile, as the Microhoo saga dragged on, stalling each company's progress, Google continued to gain search share. It also got a head start integrating DoubleClick's technology and services into its massive advertising network.

However, some analysts believe that a lengthy regulatory review of a Microsoft-Yahoo union would have given Google even more time surge ahead of its competitors. "Microsoft did the smart thing -- they walked," said Silicon Valley analyst Rob Enderle. Gartner analyst Van Baker pointed out that Microsoft might now wait for Yahoo's stock to collapse before coming back with a lower offer that Yahoo might be forced to take.

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