potentialgeek - 3:35 pm on May 4, 2007 (gmt 0)

YHOO is up, but MSFT is down. That tells a story in and of itself...

This looks like desperation by MSFT, which has been so slow in the past to make deals and be aggressive--in stark contrast to GOOG.

YHOO has struggled for years to compete with GOOG, and it's also been losing market share (search, at least), for years. It has also had its own problems or mistakes which contributed to this, including in the last number of months; point being, YHOO still hasn't shown signs it can get its act together.

The stock trading today reflects the idea that YHOO investors will be glad to see someone else have a go at turning the ship around, and it also shows MSFT investors aren't exactly thrilled, because they know about all the problems YHOO has had--they know it's a troubled property and a risky acquisition.

If I wanted a company to fix YHOO, I wouldn't choose MSFT. MSFT hasn't even been able to overtake YHOO in search, for crying out loud, so why should I be optimistic?! Sure they'd get more market share, at least at first, but bigger isn't necessarily better.

p/g