grelmar - 7:32 pm on Feb 5, 2008 (gmt 0)

I think it's telling that from Y!'s end, since Ballmer announced the hostile takeover intent, the high level talks have essentially been between Yang and Schmidt.

Yang isn't going to go down without a fight. The regulators are going to give Microsoft the full treatment on this, and although that won't stop the deal, it will cost MS a pile of $$ to fight it.

Also, the simple fact that MS is even looking at financing the deal with any debt at all represents a sea change in Redmond's ability to compete through acquisition. MS has never had to finance an acquisition before, so from a corporate culture point of view it's a huge step.

It makes MS look desperate, and I think they are. They see the change coming in the revenue model, and they see the need to shift strategy and focus. The question is whether the Titanic can pull hard to port before the iceberg hits.