I just hope that MM values inside talent and does not go on a startup shopping spree. Yahoo has great undervalued, underutilized assets, and with Yahoo's distribution and reach it can do great things without overpaying for "frothy" startups with dubious value/products.

"Yahoo has great undervalued, underutilized assets"

Such as? I'm not doubting you, I'm just curious to know.

I always thought Yahoo Pipes[1] was an amazing product - especially for when it was first released.

If Amazon had developed it they'd have called it 'Data Processing Services' and charged for how many cycles it took up.

1 - http://pipes.yahoo.com/pipes/

Flickr, Yahoo as a portal (5th most visited site in the U.S.), International presence and distribution, Yahoo Finance, Games and Mail.

On top of that, Yahoo ain't financially dead a la Nokia and RIM. Yahoo is very profitable, with billions of revenues and net income. I wouldn't write off Yahoo just yet.

Their dev tools are awesome, their APIs are very easy to work with, and their ToS are incredibly permissive.