Microsoft is no longer interested in buying Yahoo but remains open to acquiring the company's search business, according to press reports and statements from Microsoft Chief Executive Officer Steve Ballmer.
Too bad—at least for Microsoft (MSFT) shareholders. Buying Yahoo (YHOO) would block the company from attacking Microsoft's desktop franchise.
Yahoo? Attack Microsoft? That's right. The prospect of Yahoo trying to erode Microsoft's lead in applications for the desktop is a lot less far-fetched than either company beating Google (GOOG) in the search/advertising market (much of the reason Microsoft went after Yahoo in the first place).
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