Should Yahoo and Microsoft Merge
This is one of the wierder developments in the battle for search. Some analysts think that Microsoft's MSN and Yahoo! shouldn't merge, citing serious overlap and different cultures as a reason for problems.
Others are saying that they think that they should merge, just to consolidate their holdings against Google. The analysts in this camp suggest that even though it would make Microsoft take a loss, and dilute their earnings. Their reasoning is that Microsoft is a non-runner online, so they need to gain a presence no matter what it costs. Yahoo is falling fast and they need some help and credibility. Some think that Yahoo could benefit somewhat from Microsoft's culture as Yahoo seems to have some execution problems.
My take on all of this is that if they are smart, they will merge no matter the cost, and Yahoo should use Microsoft's hooks to gain access to the desktops for all of their services. Yahoo has more services of higher quality than any other web vendor. They are deep in Web 3.0. They should chalk up that they have lost Web 2.0 to Google, and start working on Web 3.0, the semantic web.