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Speed test shocker: AT&T wins Gizmodo’s 12-city 3G megatest
They shook them up, caused them to lose some of their executives and make some moves from a position of fear.
When faced with great fear involving your survival, the typical reaction is to "freeze" (i.e. do nothing), which is a pretty good strategy for certain scenarios, or bring yourself closer to death by making irrational moves. Yahoo did the latter.
How many people out there use Yahoo for anything (other than maybe email/IM and Yahoo groups)? None that I know.
MSFT is going to have to split up its growing businesses (mobile and xbox) from it's dying OS business.
The best outcome in my opinion is if both MSFT and YHOO start splitting up their divisions and re-organizing after this deal falls through.
MSFT acquiring YHOO would result in more layoffs on both sides and a deeper setback to MSFT and YHOO businesses than splitting up their divisions and re-organizing.
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