Microsoft made a smart move and a great offer for Yahoo. This comes to 34x EBITDA after subtracting stock compensation costs.

Unless Yahoo adopts the concepts I have suggested (an aggressive move into becoming more of a media company via acquistions) then Yahoo should sell. I am sure Yahoo can wrangle a few dollars per share more from Microsoft.

And what a great move for Microsoft. Yahoo's traffic will be perfect to pitch the growing number of Microsoft products ranging from the Xbox to software to whatever. Of course Microsoft will gain in search traffic, but I think the big lever for Microsoft is the goods and services Microsoft can pitch to the Yahoo masses.