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WSJ has finally put the lid on the much hyped Microsoft-Yahoo acquisition chatter that got everyone talking. According to WSJ:

A year ago, Microsoft Corp. and Yahoo Inc. explored the idea of combining to form a greater competitor to Google Inc. The talks led nowhere, leaving Microsoft and Yahoo to forge their own paths in pursuit of Google.

The same situation seems to have just played out again. Microsoft and Yahoo in recent months discussed a possible merger of the two companies or some kind of match-up that would pair their respective strengths, say people familiar with the situation. But the merger discussions are no longer active, these people say. The two companies may still explore other ways of cooperating.

The higher ups at Google could finally have a relaxed weekend and so much for the exclusives from New York Post, looks to me as if they churn out rumors to gain traffic and links.

[via]