We’ll see books  written about this epic battle of  the  3 tech behemoths – Microsoft, Yahoo and Google.  Another chapter was written this morning as Yahoo defiantly rejected Microsoft’s bid indicating it "massively undervalued" the company and that the company isn’t likely to consider an offer below 40.  There has been talk of Yahoo partnering with Google and using their advertising platform but I don’t see how they’re going to get around the regulators on that one.  Google CEO Eric Schmidt whined about a Yahoo/Microsoft merge as monopolistic… I’d have to say Yahoo + Google in any capacity is more so.  Sure Yahoo retains its pride with this rejection and stirs some excitement amongst employees in their battle with the much hated Microsoft, but is it a good business decision?  Time will tell, but I don’t think Yahoo is in any position to playing chicken with Ballmer.  A couple things are certain though.  This fight just got a whole lot more interesting and whichever way this plays out Google benefits big time.  Long Google and looking to get longer.

The Seattle Times has a good rundown of what might happen next.