About Yahoo / Microsoft and an easier way to get $2B in revenue annually

You can read all about the potential acquisition of Yahoo by Microsoft, here for example, where Marc Andreessen writes:

"I think that a Microsoft/Yahoo merger would have practically no impact on any high-quality Silicon Valley startup." (from Silicon Valley after a Microsoft/Yahoo merger)

You should read his whole paper to get his 5 point argument. And I definitely agree with this conclusion:

"Build something of value -- something that people want, and something that will be profitable at the appropriate point -- and the world is yours. [snip…]

Or, reduced to a phrase: the best way to get bought is to not be for sale. " (from Silicon Valley after a Microsoft/Yahoo merger)

Good stuff , especially that last conclusion.

Personally, I am shorting both Microsoft AND Yahoo.

I predict that the 'integration' (a word used very loosely) will give both Microsoft and Yahoo a huge amount of indigestion because I think it's basically not possible.

The expected 'leverage' and 'reduction of duplication' will actually be an extended period of executive and strategic distraction , loss of the best people at Yahoo, and in the end, nothing.

I think Microsoft would do better putting those $40+ Billion in the bank and get a nice $2,000 million revenue stream annually, forever.