I have to be honest with all of you what many of you think about the iPhone 3G I think about the Microsoft Yahoo story. I don’t believe it would be good for either company to merge and would only buy Google more time to increase its lead against the two in advertising.

Yesterday Microsoft released a statement basically saying that they’re still interested in Yahoo. Microsoft said that they would be interested in purchasing the search area of Yahoo or alternatively purchase the whole company. This deal with Yahoo’s current board clearly wouldn’t happen, as Microsoft has already tried that. But, with Carl Icahn’s proposed board it would likely happen.

Yahoo also came out and issued a statement saying that they are still ready to enter into negotiations with Microsoft if they would make an actual offer, and the offer was what Yahoo wanted.

I really think that Carl Icahn and everyone who wants Yahoo to sell either thinks that they can make big bucks from the transaction or that we live in a utopian world where this sort of merger would end up with both Microsoft and Yahoo better off afterwards. But, clearly we don’t live in a utopian world and what would likely happen is months and months (maybe even years) of trying to figure out how to integrate Yahoo into Microsoft with all of their redundant properties (search, ads, photos, blogs, email, etc.). This would allow Google to pull further ahead and destroy the competition completely (namely Microsoft/Yahoo).

Cnet
Microsoft