It looks like to me with all of the money and talent that MSFT has, they could easily develop a competitive website and search engine and do it on their own, instead of paying all of those billions for YHOO.
Google Inc expects to launch new products for its YouTube Web video service in the next few months and sees reason for closer cooperation with Yahoo Inc, Google Chief Executive Eric Schmidt said on Thursday.
Schmidt has said getting the video sharing site to make money is the Web search company's top priority for the year. He did not give details of the products, however, and they are not even in initial, or beta, testing.