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Okay, lets see now. The news broke earlier today, Microsoft wants to buy Yahoo!,  Now,  What would this imply?

Let's see here.  Yahoo! is a quite successful old fox in the net. It's got a semi-functional music-download store, Web based ad service, Mail system, integrated login and distributed ID's. They have before bought and integrated (by some measure of force) Flickr and other sites.

So, What does this mean? Well, so far, MS has been quite a failure in the "Web 2.0" buisness, instead of joining it (Well, they did help create the basic premises, but they aren't well known for their agile web thing), they purchase Yahoo! which did succeed/purchase itself into the Web 2.0 social angle.

At the same time, Microsoft are busy pushing Silverlight onto the world, their re-implementation of Java Applets in .NET.  About as useful, and about as pleasant to work with for the end-user.   Indeed, the wave of the future.

So. What will we see? Layoffs, Redundancies, the integration of platforms, the firing of The Firebug developers ( MS Doing Firefox addons? Forgettit.)   The integration of MS Passport into the Yahoo! login system.  Migration or/and reimplementation of all the Yahoo! user logins.    The migration from Solaris/Linux machines to MS hardware on Yahoo! will probably have to wait though, we all remember how it went when they tried to do that to HoTMaiL. Now then.  Let's see, who's afraid of the Big Bad Google? Mmm, yeah.  That's correct.

Update:

The combination will create a more efficient company with synergies in four areas: scale economics driven by audience critical mass and increased value for advertisers; combined engineering talent to accelerate innovation; operational efficiencies through elimination of redundant cost; and the ability to innovate in emerging user experiences such as video and mobile. Microsoft believes these four areas will generate at least \$1 billion in annual synergy for the combined entity.

It seems we have found the core of the matter here. Apple's iPhone, Google's Android, Nokia getting into Trolltech,  and now this? I suspect that Microsoft have the shivers of being ran over in the mobile music/video download market.

And,  I just love the idea of them gaining efficiency by trying to merge the teams and technologies. The work cultures and practices.   Yahoo! instant messenger merged into MSN framework,  Yahoo! search powered by MSN?  Or the other way around...

The other alternative would be that MS is trying to drop a lot of their current market value for some reason.  I wonder why?