According to Yahoo, the deal with Microsoft is officially dead after Yahoo turned down offers for multiple deals, including one that would see Microsoft encompass only a partial ownership over Yahoo rather than a total buyout. Yahoo claims that Microsoft itself is also no longer interested in a full buyout deal, but may still be pursuing acquiring the search aspect of the company. This has caused Yahoo shares to plunge 10 percent as investors abandoned hope that Microsoft would renew a nearly five-month quest to buy Yahoo.

With Microsoft out of the picture, Yahoo said it had agreed to let Google put search ads on its site. In the new agreement, Yahoo and Google ads would be pitted against each other similar to an auction style process. This will make it easier for the deal to pass what’s likely to be a major antitrust review by U.S. antitrust regulators and lawmakers.

The move, according to Yahoo will give its company an $800 million annual revenue opportunity that would boost cash flow by $250 million to $450 million in the first 12 months of partnership.

Well, I do hope that the Yahoo’s current move will help Jerry Yang prove that he made the right decision when he turned down Microsoft’s $47.5 billion takeover bid, or $33 per share. Yang asked for $37 per share but Microsoft withdrew the offer.

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