IMHO-We get maybe a point to two point jump, however for the long term it makes MSFT look inept and unable to move forward. As a s/h you have to unlock future value not just overnight value. A MicroHOO could provide a new avenue of income that can take the burden off of the mature businesses MSFT owns.
Choice 2 pointsa in one day or a gradual 8-10 points over time?
They gain alot, yahoo doesn't want the deal so why would they want to buy or take on an unfriendly merger. In addition MSFT should look towards another area of investment . AOL is probably a better bang for your buck I really think MSFT could find a better area to put thier dollars, they should invest in phone company Sprint Nextel, or and equipment maker Mot, it appears that the internet is going to migrate towards cell phones, yahoo will have a position thier but I think there are better investments who knows ?