Businesswire reports that Yahoo (NASDAQ: YHOO) and Microsoft Corp. (NASDAQ: MSFT) have officially ended their discussions about any kind of partnership. Yahoo stock is down 11%.

According to Yahoo: "Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested. With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors rejected it for three reasons:

• Such a transaction would not be consistent with the company's view of the converging search and display marketplaces,
• Would leave the company without an independent search business that it views as critical to its strategic future, and
• Would not be in the best interests of Yahoo! stockholders.

Expect more loud squawking noises from Carl Icahn to follow. Cover your ears!

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.