I can’t say I didn’t see it coming. Microsoft has never been strong in the internet search arena and yahoo has been a far second to Google. But maybe combined they may offer a force to be reckoned with, especially with a majority of the projects being duplicated that can be merged to save time and energy:

Yahoo mail and Hotmail dev can merge
Live Maps and Yahoo Maps can merge
MSN and Yahoo search merge
And many more

This would be a great step for yahoo to take, especially with the news of layoffs…maybe they can pull those pink slips back and move towards success with Microsoft.

We’ll see