The web is a buzz with the sounds of Microsoft's and Yahoo's impending merger. Speculations fly as the technorati try to predict what this will mean for Yahoo and it's Web 2.0 offspring. Not too many are trying to see Microsoft's future in the crystal ball.
It hasn't happened yet. Yahoo has to issue a response to Microsoft's proposal. Every piece of fiscal sense would tell Yahoo to accept, but only they know for sure. The big question is what will happen to the Yahoo services we all use? I am personally vested in del.icio.us and Flickr with content and time. Will these sites become part of Windows Live or the MSN community? I hope not. Microsoft should keep these products in play and figure the best way to monetize them to a profitable level without comprimising the user experience.
The biggest piece is ads. Ads those annoying little pieces of web commodity that drive major corporations like Google and Yahoo. The acquisition could make Microsoft a very large competitor to the 800lb gorilla of the ad-space, Google.