Google wins in the Yahoo - Microsoft battle ...

Microsoft over the weekend withdrew its offer to buy Yahoo. Yahoo reportedly wanted $37 per share and Microsoft was ready to offer $33 per share. In the end both sides did not budge and the deal fell apart.

Microsoft was given credit by analysts for not paying too much for Yahoo. Yahoo board on the other hand is sure to face shareholder lawsuits for not accepting Microsoft's offer. Yahoo stocks have not fallen to the pre deal price because a lot of analysts feel that Microsoft will come back and make another offer for the Internet giant.

Microsoft needs Yahoo to make its Internet division profitable. Windows live search was supposed to do that, but Microsoft's share in the search market increased for a while Microsoft offered goodies to use its search, but has since been losing ground to Google.

With both Yahoo and Microsoft distracted for this long, this just plays into the hands of Google, which has steadily gained in the Internet Search market and holds a strong position in the $25 billion online advertising market. After the Yahoo-Microsoft deal fell apart, Yahoo shares stumbled more than 15 percent, Microsoft and Google both surged around 5 percent. With Yahoo agreeing to allow Google to display Ads on its search results, the going simply gets better for Google.