In the acquisition game, Microsoft has been rebuffed by Yahoo and has said that it is no longer interested. Microsoft has stated that it has moved on and has focused on other future ventures. Stock analysts, stakeholders and Yahoo itself view this rhetoric as part of strained courtship dance. Microsoft remains interested in buying Yahoo:

“… Now the market collapse has helped drive Yahoo’s value to a fraction of what Microsoft originally bid. If Microsoft — or another buyer — were to float a new offer, the acquisition would come much cheaper, and Yahoo would likely be under even greater pressure to take it.”

link: Yahoo again in focus for takeover

The third party to these proceedings is Google. Microsoft wants Yahoo to regain some ground on Google. Meanwhile, Yahoo and Google are in a advertising partnership that awaits regulatory approval. Yahoo needs to the advertising might of Google to put some financial distance between itself and Microsoft. With this economic downturn, the advantage goes to Microsoft. And for Yahoo, the advertising partnership with Google becomes more imperative. Acquisition pressure from Microsoft will revisit again - it is only a matter of ‘when’.

Catherine Forsythe