Post-Microsoft, What's a Yahoo to Do?

High-fives broke out at Yahoo yesterday after Microsoft revoked its buyout bid, but founder Jerry Yang and colleagues may want to hold off on celebrations, the New York Times reports. Analysts expect the stock to tank tomorrow, shareholders are mulling legal action, key workers may walk, and an alliance with Google could prove disastrous.

“I don’t believe Jerry Yang was really looking out for my interest as a shareholder,” griped one investor. But after successful work with Google on search ads, Yahoo may find new life teaming up with its archrival. However Yahoo execs proceed post-Microsoft, one analyst says they need to prove the company’s value and “put their money where their mouth is.” (More Yahoo stories.)