Advertising company (with sideline in search) buys another advertising firm and negotiates and handles the deal better than software firm (with ambitions in advertising) does. Also in the news, water is wet.
This is about core-competencies, not about companies suddenly making rash decisions because one just fell through. You can flip the whole thing around and look at many of Google's attempts at building software platforms live Wave, Gears or App Engine and messing the process up badly not necessarily because the underlying ideas or technology weren't there, but because it's so far divorced from what they know how to do that they made many of the mistakes an established platform builder like Microsoft knows only too well how to avoid.
Any time you attempt to branch a business out into unknown territory you have to accept a greater degree of risk. And when you do, you have to go with the "sometimes you win, sometimes you lose" mentality and not bet more than you can afford to lose.