Months after Microsoft announced its intention to buy Yahoo, it appears they are finally coming together. Microsoft appears to be willing to raise the price to 32-33$ per share while Yahoo board would be satisfied with $35. Do the math.

At this point, unless I missing something really big, the merger appears to be a foregone conclusion. It is in the interest of Microsoft to gain a larger share of ad revenue market.

Google will be facing the biggest challenge ever to its hegemony over online advertising market.