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Moving beyond Microhoo

Monday morning quarterbacks get plenty of action as Microsoft abandons its bit for Yahoo. So what's next for the two companies?

Monday morning meant back to reality for both Microsoft and Yahoo, after talks between the two sides collapsed over the weekend.

Both companies have maintained they had a strategy independent of the other, but now the two sides will have to prove it. The companies are likely still in dealmaking mode--just not with each other. Yahoo is still pursuing deals with Google and AOL, a source tells CNET, while Microsoft has indicated that it will also look at other business deals. AOL could be on Microsoft's short list as well.

Yahoo shares, meanwhile, got their expected pummeling, with many investors still shaking their heads over how Jerry Yang could "just say no."

So, what now?

Well, the decision to end talks is a full employment act for talking heads, including yours truly.

I recorded a video with Editor in chief Dan Farber in which the two of us discuss the matter, while Stephen Shankland and I took up the same topic on Monday's daily podcast. If you want still more, I'll be on the public radio show Marketplace Monday afternoon taking up the topic again.

As for the companies, it's time to move on to Plan B. I took a look at Microsoft's Plan B over the weekend, while Shankland did the same for Yahoo. But I'm curious to hear what others think. Was Jerry Yang crazy to say no? Should Steve Ballmer be thanking his lucky stars?