Google terminates Yahoo!

Yahoo! has announced that Google has terminated the advertising services agreement the companies announced in June. Yahoo! continues to believe in the benefits of the agreement and is disappointed that Google has elected to withdraw from the agreement rather than defend it in court. Google notified Yahoo! of its refusal to move forward with implementation of the agreement following indication from the Department of Justice that it would seek to block it, despite Yahoo!’s proposed revisions to address the DOJ’s concerns.

While the implementation of the services agreement with Google would have enabled Yahoo! to accelerate its investments in its top business priorities through an infusion of additional operating cash flow, this deal was incremental to Yahoo!’s product roadmap and does not change Yahoo!’s commitment to innovation and growth in search. The fundamental building blocks of a stronger Yahoo! in both sponsored and algorithmic search were put in place independent of the agreement.

What we think?
Was the deal incremental to Yahoo!? If I am right – Google was sweating over the Microsoft takeover and zoned in using the deal. Now, Microsoft is cold it cancels it – leaving Yahoo! (its rival) in the ****.
Or is this a consequence of Yahoo’s own arrogance?  MicrosoftHOO would have been great.