New York Times - Microsoft said it was abandoning its blockbuster bid to acquire Yahoo after the two companies could not agree on a price. At the meeting, which also included Yahoo’s other co-founder, David Filo, and Kevin Johnson of Microsoft, Mr. Ballmer increased Microsoft’s offer to $33 a share, but Mr. Yang said Yahoo would not sell for less than $37 a share.

Google is doing everything possible to make Microsofts job hard in this takeover. Google has agreed to help out Yahoo by participating in an unusual test that will gauge how much more advertising Google can sell for Yahoo!

The two-week experiment will be limited to ads posted alongside a small percentage of Yahoo's online search results in the United States.

Associated Press - A person familiar with Microsoft's bid for Yahoo says the software company is evaluating its offer in light of the economic climate and the Internet pioneer's deteriorating business. Yahoo fell nearly 5% in after hours trading.

Yahoo stock is on its way down - A long, long way down. Citigroup analyst says Microsoft has to increase bid. Wall Street Journal says Microsoft has no such plans. So one of them has to be wrong. Right? Wrong. They could both be right. It's just a matter of 'timing' and 'two-timing'.

Why Bear Stearns shares rising up is a bigger problem than it looks. Also, Bear Stearns head honcho Alan Schwartz has an overflowing cup of woes. Forbes - SEC planning investigation and potential inquiries. Reuters - Bear Stearns Cos Inc Chairman James Cayne and top shareholder Joe Lewis are quietly searching for another bidder.

Good news for Yahoo shareholders, since their stock won't be going back down to the pre-Microsoft-offer level. Yahoo Inc extended its deadline to nominate board directors, gaining time to seek alternatives. Jerry Yang, in return for being allowed to insert this delay, probably had to give some sort of assurance to the board that this would be the last attempt.

Detroit's police and fire department retirement system as well as the city's general retirement system filed suit against Yahoo! Inc. for rejecting the Microosft bid and in doing so, says the suite, acted against the fiduciary interests of shareholders.

Who has the deep personal connections and even deeper pockets to come up a strategic alternative to the Microsoft offer? Both Jerry Yang and Masayoshi Son are part of the board of Yahoo Japan, of which Softbank owns a controlling interest and Yahoo! Inc. owns a part. Son also owns a part of Yahoo! Inc. and is the richest man in Japan.

Article looking at the positives and negatives of a YHOO and MSFT merger. Speculates about what actions Yahoo will take in the merger defense arena. It also predicts that the deal will not get past regulators and that if it does it will be mistake for Microsoft's shareholders.