It appears that the man in the ten gallon hat has gotten back into his car and driven away. This of course is after he huffed, puffed and made crazy threats and the ranchers likewise made threats of their own including scorched earth.

Whatever analysts and the blogosphere might think of Microsoft walking away from it’s offer for Yahoo!, we are happy it has. Primarily, we think the deal would likely have killed off both companies. This is better for Yahoo! and Microsoft, their shareholders (including us), and the Internet industry as a whole. And we are glad it is over this early instead of a bloody fight that drags on for months and years. Now it is time for both sides to get back to business and battle where it matters, the marketplace.

We don’t doubt for a moment that Microsoft won’t be back. Like the man in the ten gallon hat, it will bide its time and take the risk that Yahoo! fails to deliver the numbers it has promised to shareholders over the next few quarters and years. It will also use its leverage to make life as difficult for Yahoo! in the mean time.