Yahoo! announced their Q1 results today and as expected they are strong, not amazing but string none the less. Now the ball arrives back into Microsoft's court and we wait to see when they will up their offer for Yahoo, I suspect to $35 per share. I would feel however that this is now the time for Microsoft to withdraw from the deal completely. A final offer from Microsoft for about $33 per share would be a good next move. Once that bid is rejected the next step will be to either attempt to replace the Yahoo! board if they're that desperate to take them over or withdraw from the bid altogether. Within a couple of days I hope to take a full look at Yahoo! and MSN offerings and see just how far away from being truly competitive Microsoft actually are but I suspect if the money being spent trying to take over Yahoo! was spent on R&D and hiring new blood Microsoft wouldn't have to worry so much.