Yeap – that’s right – in my opinion, Yahoo! has definitely done the wrong thing. They have struck a deal with Google, so that their search results display Google-ads. Why would Yahoo do this? Sure you can understand the temporary shareholder value increase, but in the long term can only spell death for the search engine.

So the company is worth more, at least in the eyes of the shareholders and Microsoft, but does that mean Microsoft are interested anymore? I don’t think so. Of course, we can only speculate on the intricacies of the contract struck between Google and Yahoo!, but I’m sure Google have worded the legalise to make sure their ad deal sticks, no matter who buys Yahoo! – you would be stupid not to. By penning this one deal, I think the following will happen:

• Google will remove Yahoo! slowly from the search arena and gain monopolistic proportions themselves – 82% according to ComScore
• Microsoft will instantly been turned off by a Yahoo! deal, partial or otherwise – Jerry Yang’s plan?
• The replacement of Yahoo!’s board with Icahn’s influence may actually carry some weight now
• An anti-trust lawsuit to follow if Yahoo dips out of search?
• Yahoo! to switch tactics and focus fully on community driven projects, with Google supplying the ads

So what next for Yahoo!? It looks as though they’re getting out of the search game to me, either by choice or by Google sucking them dry.. Anyone remember AOL as search? Didn’t think so..