Yes, the deal announced early Wednesday allows Yahoo! to focus on its strength: selling online advertising. It also will give Microsoft's new Bing search engine nearly 30 percent of the online search market and a shot at competing with juggernaut Google.
But while Yahoo! consolidates and Microsoft plays catch up, what is Google doing? Working on the next generation of Android, its open-source operating system for smartphones.
If you were the business strategist for one of these companies, where would you see the most potential: search-related display ads or smartphones?