Thanks for your comments.

I agree that GOOG acquiring YHOO would spur antitrust issues.

However, without the MSFT bid on the table I’m thinking that YHOO goes back below $20, which makes it a great candidate for acquisition; however, it appears that Yang somehow believes that the public market isn’t valuing YHOO where it should.

In my opinion, YHOO had a great opportunity with Panama. Honestly, I was holding out hope that Panama would prove to be a real competitor to Google Adwords. However, Panama has not lived up to the hype and, in fact, is probably an inferior pay-per-click system to the original Overture and GoTo.com model.

anty – I’m thinking both YHOO and MSFT are dealing with image problems right now. I agree with you that there would be a sort of “so what” if the acquisition happened, but as stand alone companies YHOO and MSFT really don’t amount to a serious threat to GOOG.

The only real threat to GOOG is an unknown…a better search engine.

At this point, I can’t think of any technology on the market that is even close to GOOG, but time will tell.

I think if Microsoft would really buy Yahoo!, they would suddenly get a bad image attached to their brand.