Yahoo! and Microsoft are so over each other, it's not even funny
According to the Yahoo! press release, Yahoo! board members decided that it would not be in the company's best interest to sell its search business. Microsoft, on the other hand, released a statement saying that such a partnership would have provided value for Yahoo! shareholders while ensuring a competitive marketplace.
Oh, and while Microsoft has withdrawn its proposal to buy all of Yahoo!, if Yahoo! decides to change its mind and come crawling back, Microsoft says its offer to buy just the search engine "remains available for discussion." So umm, yeah, maybe it's not really over yet.