Microsoft opening the wallet for Yahoo!

Yahoo cannot survive on its own. Microsoft needs a search technology boost. The companies have been talking for over a year. Last February, the deal could have been $60 billion vs. $41 billion on Friday.  Yang is calling in the big guns by reaching out to Google to see if they can "work together." Google could try to cloud this deal by crying anti-trust foul. Ballmer today in their analyst call said that Microsoft acquiring Yahoo would do more for competition than some arrangement with Google & Yahoo. This makes sense for Microsoft and I would expect this to go through this year. Microsoft could use this as a platform for MS Live, think getting more business eyeballs using Microsoft software as a service technology. Yahoo has some good relationships from a content provider to major carriers and is a top destination site - much more than MSN.  It would be important to get the Yahoo software team on board because many new graduates choose to work for a Google or eBay rather than a mainline software company such as Microsoft. This could add some pizzazz to Microsoft's offerings. The only problem I see is that Microsoft will most likely drop the brand altogether within 2 years.