I'm hoping the takeover doesn't happen, I think it would be bad for both companies in the long run.

I think Microsoft would be made to pay all the money for a failing company. If I were Yahoo I would bite their hand off to sell it for the money Microsoft were offering.

Well I guess they don't believe that Yahoo is a failing company then?

It probably looks like a lot of money, and indeed probably is, but is not the return on the investment, or its not the direction they see the company taking…

I think (therefore it's prob. not true) that the direction is the advertising revenue potential from all the users of yahoo brands. There are an awful lot of people who use one, or more of yahoo's services (I do), and the demographics are in the young/affluent group (not me), just the target for advertisers.