Yahoogle: No Joy in Mudville

Here’s an email I got from a high-ranking Yahoo (YHOO) employee today after the Microsoft (MSFT) deal was declared dead and the ad-outsourcing deal with Google (GOOG) announced hours later:

“Out of the frying pan, into the fire. At least, the frying pan was a slower death.”

And here’s an email from a major Yahoo investor–no, not Carl Icahn!:

“The Board and Jerry are idiots.”

And those are people who presumably like Yahoo, since they work there and buy its stock.

Well, both got a big dose of disappointment today, as Yahoo shares dipped to $23.50, losing 10% of their value.

It’s just as ouch as that old pick-up line: “Did it hurt when you fell from heaven?”

Yahoo, of course, has fallen from a little lower in the stratosphere.

But the abandonment of a $33-per-share deal that Microsoft might have meant is gone, baby, gone and the prospect of a lot of negative attention over a questionable partnership with Google adds up to a lot more turmoil ahead.

Of course, turmoil has been the weather forecast for Yahoo for far too long now.

And there is possibly more to come. Many, many sources told BoomTown to expect more major departures from Yahoo’s ranks, including from its board.

According to people familiar with the situation, not every board member was thrilled with Yahoo’s Google alternative.

But not every board member, like a lot of Yahoo employees, has a lot of control over the troubled Internet company.