Microsoft wants Yahoo! I suspect for two reasons. Even if Yahoo! isn't top dog in the internet searching business anymore, they once were. They aren't slouches. They knew what they were doing and probably still do. There is also name recognition. If MS eats Yahoo, then it'll probably send a metaphorical chill down other competitors backs. In addition it gives them more strength to fight "Teh Google" (sic) and that is what I suspect the true goal is. I believe that for whatever reason, rather then developing internally a search/gateway/etc development team, they want to just snatch up Yahoo! and their talent and manipulate it from their into their own image. Google is probably one of Microsoft's few 'true' competitors, except for maybe Apple. In the way that MS and Apple fights computers, MS and Google fight for the interwebz. At least this is how i see it. Any corrections or errata may be appended in a reply.