and Sears ain't no Microsoft and Yahoo! ain't KMart. Robert tries to make an analogy of Microsoft's bid for Yahoo and Sears buying KMart.  First off Robert, you should no that the Sears/Kmart deal was not so much about retail shopping and more about the real estate that both organizations owned. That was the reason for the high stock value.  But lets be clear Robert, though Google may own the search business, neither Microsoft nor Yahoo were exactly hurting.  In fact Google at best has an uphill climb to knock Microsoft down from anywhere.  Anyone who has used Google Apps can tell you that. 

Yes search is a cash cow for Google, but they have to use that cash to take on Microsoft on Microsoft's own turf - applications, OS, etc.  In the meantime Microsoft is into everything from game consoles to set top boxes and automobile software. Google in the meantime has not proved that it can monetize anything beyond search. But to be fair search is a part of this. By taking Yahoo's search business and combining it with MSN it puts pressure on Google to keep innovating in search. it pins Google down on that and could de-focus them from competing with Microsoft on other fronts.  Also, base on Google's latest financial s and stock price maybe we have seen the peak of paid search? Not to say Google is hurting either.  You are talking about an online war of behemoths in which search is one small part of the eyeball game.

It will be interesting to see how it plays out and whether Microsoft can in fact absorb an acquisition the size of Yahoo.  They have not done one this big before.  But lets be clear and lets not kid ourselves. Microsoft/Yahoo is a far, far cry from Sears/Kmart.  Now in the meantime, let me go look for the bluelight special.