If you read the New York Times article about the action Google is taking to crash the Microsoft – Yahoo deal, you can only conclude “They are scared shit“.
A lot of bloggers are writing about how Microsoft is going to kill Flickr. I think just the opposite. Yahoo and Flickr could mean a good change for Microsoft. Neither Yahoo, Flickr or Google are a big player in the business end of the market. The combination of Microsoft and Yahoo could be a mighty combination.