Forbes stated today that Yahoo is saying the acquisition discussion between Yahoo and Microsoft are over and that their will be no deal. Moments later Microsoft stated it won't "rebid" for the whole company but it's still open to discussing an "alternative transaction," likely an acquisition of just the portal's search advertising business.
We already knew this would never become a happy marriage, however now it looks like they can't even agree on IF they are going to be married. Conflicting statements and press releases are showing that the companies are not talking on a direct level anymore. This could be a indication that the deal is really out of the question.
Microsoft could try to do some hostile takeover bidding. The deal range was $31 to $33 per share. Microsoft launched an unsolicited bid for Yahoo! at $31 per share on Jan. 31 and later raised the offer to $33. Yahoo! wanted at least $37, so Microsoft threw in the towel on May 3.
You can read the complete forbes artikel on the forbes website.