MS finished with yahoo?

I wonder about big business and let's face it, there's no bigger business than microsoft. So naturally the entire world has been transfixed by msoft's attempt to buy the web. The redwood company have announced that they're not going to pursue yahoo (yeah? well we'll see!) so what now?
I've stated in the past it wasn't a good idea for either company, but for yahoo's stockholders will not be happy as their stock is bound to drop and as for msoft they still have their cash piles.

Jerry yang has gambled his companies future by teaming up with google and admitting that their search model is superior. That being the case, what makes yahoo a viable acquisition? Without the search model yahoo will offer nothing to microsoft. Yahoo are committing themselves to a more open web, they are aligning themselves with their competitors, which all in all means that in my opinion microsoft should walk away entirely. Why spend your cash on a company that might not last the distance, or even another year or two?