The funny thing is that a share for share MERGER might make sense for both companies. Facebook gets real content; Yahoo gets potential users; the combined company gets to pick among the best employees of both.
Where on earth is FB going to get $40BUSD from?? Yahoo is valued at roughly $30BUSD. There has to be a premium on the acquisition of at least 10-15%. FB has $9,5BUSD in cash. What are they going to do? Do a secondary offering towards the market? Crazy. FB will fall to pieces faster then I thought. So many direction this company is taking...it will mean ruin for the investors longrun.