Chief Executive Jerry Yang says Microsoft walked away from a deal that would have been ”tremendous amount of power,” while onstage at the All Things Digital conference.  After shutting the door on a flat out purchase of Yahoo, Microsoft announced that they would consider a “we own you, but not really” merger.  The two companies began to chat each other up, but Yang is now stating that Microsoft has walked away from the pow wow.  Price and what roll Microsoft will play and not play seem to be the sticky point in negotiations. I say Microsoft has realized that they have to make sure that their Windows 7 just announced works like they said it will.  If not they’ll have another embarrassing Vista on their hands.  So yeah, they’ve got bigger things to worry about.

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