You'll likely recall that last week, the Wall Street Journal reported that Microsoft was in talks with Yahoo regarding a possible acquisition of the web company [1]. Now the same publication is reporting that the talks have come to an end, fruitlessly. "Microsoft and Yahoo discussed a possible merger or other matchup that would pair their respective strengths, say people familiar with the situation. The merger discussions are no longer active, these people say, but that doesn't preclude the two companies from some other form of cooperation." Apparently, Yahoo wasn't interested in inking a major deal with the folks in Redmond, a fact that doesn't surprise people who are familiar with the company's upper management. Meanwhile, Microsoft CEO Steve Ballmer remains unhappy with the company's web business and short of a Yahoo buyout, might settle for a major departmental shakeup instead.

For more on the ill-fated deal:
- see this WSJ article [2] (sub. req.)