Microsoft’s deal to acquire Yahoo is getting plenty of press. Google is going to try hard to keep it from happening and the high-tech industry is on its toes to see which way this might go. I think this deal has as much of a chance of passing as Google has of getting the DoubleClick one getting through – meaning .. it is unlikely that US will be a problem but Europeans will give them a hard time. Google’s argument that the combination will have more IM and Email accounts is a bogus one .. it is all about audience and it is all about advertising.

Google’s ploy to offer a helping hand to its competitor is clever one and might give Yahoo some reason to pause and think more. Yahoo is having a hard to figuring out its strategy and they can’t seem to have a good idea. Microsoft has spent millions to get closer to Google and has been continuously failing and the gap continues to grow.

Even if the merger goes through (which can take a good year), the integration won’t be easy. There is plenty of tech overlap. The culture of two companies are different and history is littered with examples of companies with different cultures failing within 2 years. It will make a good business school case study. Again, Microsoft is after audience and advertising. Rest is just window dressing.

Ballmer might want to call Larry Ellison for some tips on hostile takeovers.