We have mentioned often that 2008 just might be a good year (relatively) for strategic deals. Microsoft's surprising hostile bid for Yahoo--a massive 60 percent premium--suggests as much. Companies with strong currency (stock) may decide the time to act is now. Yahoo's options seem limited. And reflects the credit environment right now. Could it go private at these prices? I doubt it. Will an alternative buyer emerge? I doubt it. Financially, Yahoo would appear to have little choice but to give shareholders what they want.  

For more:
- here's a New York Times item [1]
- here's Ballmer's letter [2]