NetSurfing

After over one year of news of a probable acquisition of Yahoo from Microsoft and of continuous denials we find us to see a Microsoft totally defeated by Google and a company that in these last years it misses more and more of innovation and search. 
After the definitive abandonment of Bill Gates and the entrance of Steve Ballmer as new CEO Microsoft is in front of a difficult situation. 
Following a recapitulate: 
" Microsoft for the first time in the history starts to lose a small quota of market and to reduce the earnings because of a new type of laptop called netbook (a small portable laptop computer designed for wireless communication and access to the Internet) that quickly they earn a quota of market. A sector that forces Microsoft to reduce the margin of profit, considering that the so-called netbooks are sold to a very low price. Microsoft in this case prefers to reduce the margin especially because some laptop producers start to sell netbook with Linux preinstalled rather than Windows Xp or Vista. 
" The Company loses quotas in the sector of the browsers, becoming Internet Explorer the browser used on the 90% of the computers and Firefox on 10%, quota that month after month Firefox is gaining.
" Google day after day earns percentages points as search engine approaching to become monopolist.  
Nevertheless Microsoft remains silent
However  competitors are not waiting Microsoft:

• Apple creates Iphone and in the United States it becomes a “moda”, taking a piece of Windows Mobile market.
• Oracle buys Sun Microsystems 
• Hp acquires EDS and makes to tremble IBM 
• Google try to compete against Internet Explorer and Firefox launching Android an Operating system for Smartphone
• Google acquires Youtube  
   

And now the biggest problem for Microsoft.
Microsoft launches a public offer of acquisition of Yahoo! but the CEO co founder Yahoo Jerry Yang refuses the offer as too much low, so than Steve Ballmer and Jerry Yang fight about this: Jerry Yang insist that the Microsoft offer is too cheap and Steve Ballmer insist that they already offered the maximum.
My opinion is that Jerry Yang has done well to refuse considering that a multinational when buys another multinational never offers the maximum,  in this specific case we speak about over 47 billion dollars. Is passed more than one year between Microsoft and Yahoo and nothing new happened, giving only advantages to Google that keeps on growing. 
The internet sector is a rich market full of sources and in continuous evolution and Microsoft should not lose this opportunity so should not underestimates the power of Yahoo.
What will happen if Microsoft will buy Yahoo? Here are some examples:

• Virtual Earth could appear on the Yahoo homepage (Yahoo homepage is the most visited website in the world) giving to Microsoft a good opportunity to compete against Google Earth
• Microsoft could integrate the Yahoo Mobile applications inside Windows Mobile making his operating system more attractive against the others competitors like Nokia and Apple.

In this last period I see a Microsoft that looks old, few innovative, that tries to run behind competitors (Virtual Earth after Google Earth, Msn Video after Youtube, Windows Live Search after Google Desktop).
What is the Microsoft Research Center doing ?
Steve Ballmer must quickly acquire Yahoo and create an Internet Company powerful able to compete with Google and, Yahoo could give the right chance to Microsoft to enter in the Asian market that will be one or the most important business in the world.