I still don't think Yahoo is worth M$'s money. They're aren't bringing that much to the table.

Yahoo days ago made its web hosting a flat $12 / mo fee. Absolutely fascinating to me... having been in the web hosting industry since the early 90s.

Unlimited disk space and unlimited bandwidth. $12 / mo. That is completely unstoppable depending on the features they offer and support they provide.

Let's do some quick math. They have about 1,300,000 customers now.

Let's say they make it 3,000,000 in the next 2 years.

3,000,000 x 12 = 36,000,000
x 12 = 432,000,000.

That's nearly a half-billion dollars of revenue in hosting if they can pull it off.

*Places No-limit Sell FOK Order on MSFT*

Yahoo executives are just trying to get more money out of MS. They know they can't do anything about it, so they might as well get more M$.