Microsoft (MSFT) abandons takeover of Yahoo (YHOO)

Microsoft put out an open letter from Steve Ballmer to Jerry Yang saying they're done trying to buy Yahoo.

Ballmer basically said Yahoo is asking for $37, they'll pay $33. He doesn't want to launch a hostile bid because Yahoo will blow up the business by outsourcing search to Google, thereby destroying Yahoo's own search business and causing all talent associated with Panama to leave.

Microsoft says they'll have to get to their goals some other way -- organically and through partnerships. Good luck. I was looking at this on Friday. They can buy AOL and Ask.com from Interactive Corp (IACI) but those make Yahoo look like the belle of the ball. After a few drinks. If you happen to lose your glasses.

I'm only bothering to post this because I saw it kinda early, not because I have some value to add (though I think IACI probably trades higher Monday).