Two, the stockholders outside of the yahoo board seem to have no understanding of the underlying business realities.
No, I think Mr. Icahn has a very good understanding of the business realities. In fact, everyone realizes Yahoo is a sinking ship. Google is cheering because there is one less competitor out there - Yahoo. If you think they just beat MS, with this move, you're sadly mistaken. Microsoft will still be around when people of saying "What was a Yahoo?"