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Posted by TomScrace at 2/19/08 5:16 p.m.

All this adds up to one thing: the end of Microsoft as we know it. If web services is going to be their core business in the future, and they can't master that business without buying in help from outside, then what is the parent company bringing to the table? I think that the best Microsoft can hope for at this point is that, post-acquisition, they manage to retain Yahoo's employees, and simply add Yahoo's profitability to their own, acting more or less as a holding company. If they are wise they will stay away from the day-to-day management of the firm, and will sit on the sidelines investing capital as required. If they play it right then they may be able to grow their market share by drawing on Microsoft's financial clout, and exploiting possible synergies with Microsoft's traditional businesses.

The worst case is that Microsoft acquires Yahoo, loses all its employees (a probability if the proxy fight takes place, or if they interfere too much after the buyout) and fails to maintain a significant share of search ad-revenue as a result. At this point Microsoft has effectively removed Yahoo from the marketplace, leaving Google to further entrench its already formidable lead.

Posted by unregistered user at 2/19/08 7:40 p.m.

Letter to Stockholders from Mr. Yang

Dear Stockholders,

We have no choice but to accept Microsoft's offer. I don't want our company to be involved in a proxy war which will just end up Microsoft winning it by a mile. I have suggested to name the company Yahoo by Microsoft so as not to lose our identity and brand. Either way, if they insist on putting their name together with Yahoo then I am not considering MicroWho? because it is a kitchen appliance like a Microhood. I like the idea of naming it Yahoo by Microsoft or YAHMIC! This way, our brand Yahoo will always come first.

This will be a great company and we are moving quickly to make it come true.

Billy Yang,

YahMic! Inc.