Latest on Microsoft and Yahoo combination potential
An announcement on the Microsoft PressPass web site confirms that Microsoft is indeed open to the possibility of buying all of Yahoo or just "search", but only when and if a new board of directors is elected:
We confirm, however, that after the shareholder election Microsoft would be interested in discussing with a new board a major transaction with Yahoo!, such as either a transaction to purchase the "Search" function with large financial guarantees or, in the alternative, purchasing the whole company.
Personally, and as a Microsoft shareholder, I would rather see Microsoft pick up some pieces of Yahoo, especially "search", and then have the remains of Yahoo be combined with other media entities. In fact, my real preference would be for Microsoft to spin off MSN and have MSN merge with the Yahoo content business, with Microsoft as an investor in that business. This would allow Microsoft to re-focus on the platform aspects of the Internet. Of course, this is only my own opinion.