From a FT article, Google triumphant: Search wars look settle, some excerpts:

Eric Schmidt was doing his level best late last week not to gloat. With Microsoft dropping its attempted takeover of Yahoo, the Google chief executive had just seen his arch-rival abandon its most direct attack yet on Google’s growing dominance of online search and advertising.

On the current trajectory, Google’s revenue – almost all of it coming from search – will probably surpass the income that Microsoft generates from the Windows operating system some time next year.