If they stay with Google, in long run Google will kill Yahoo.
I second that.
Unfortunately, nobody else has a financial capability to compete with Google in Search except Microsoft.
Microsoft said it was prepared to acquire an additional 16% of Yahoo for $35 a share
Am I missing something or it is very contradictive here?
Microsoft wanted Yahoo! Search technology, not the whole Yahoo. Apparently there's lots of holes in Yahoo bucket we are not aware of. My second guess is that MS wanted specific patented technologies that at this moment present a legal/technical barrier to their own SE.
Google has put the smaller online retailers (and of course, affiliates) out of business with their steep increases in the minimum bids. They want to offer fewer ads at higher click costs and they would rather repeat those ads on the deeper search result pages than run any 10 cent ads.
Bingo. The dream of 10 cent advertising evaporated fast. :) Until another SE comes along with enough traffic and interest in these thousands upon thousands 10 cent advertisers. Let's cheer all: Mi-cro-soft! Mi-cro-soft! :)))