Its long been speculated that with Manny's high contract demands, interested teams have been holding out using the abundant market of outfielders to shield them. Now that market has drastically changed. Both Bobby Abreu and Adam Dunn have signed contracts with the Angels and Nationals respectively. Abreu's $5 million 1-year deal is well short of the $16 million he made last year, but I'm sure he's releived to be signed. Dunn signed a 2-year deal with the Nationals for an undisclosed amount.
Now that those two are off the market, both the Giants and Dodgers could step up their efforts to get Manny, though I seriously doubt he will see the 4-5 years he's looking for. The other two prominent free agent position players, Orlando Hudson and Orlando Cabrera, just aren't on the same offensive level as Abreu or Dunn, not to mention Manny. So without their safety net, I suspect the Dodgers or Giants will be upping their offer to Manny. We'll just have to wait and see how this plays out, but it should happen sooner rather then later.