Lots has been written about this proposed Microsoft and Yahoo deal since it was announced on Friday. The consensus is overwhelmingly in favor of the deal. The bulk of the comments emphasize the ramifications for the search arena. Certainly this is an important reason for the deal. I still contend, however, that this deal has a huge benefit for Microsoft in terms of how it can sell a vast array of their products and services to the hundreds of millions of Yahoo's unique visitors. I have not read one comment about this to date. Perhaps I am the only who sees this additional upside?

By the way, I stand corrected. My previous post mentioned that Yahoo was potentially being paid 34x EBITDA. Mark May of Needham & Company pointed out to me that if one takes into account the substanial minority stakes Yahoo has in Alibaba, Yahoo Japan and other companies then the EBITDA is closer to 18x. Thanks to Mark!