With Microsoft gaining an excellent ability to shoot itself in the foot with Vista, I must say I am all for this deal for the following reasons:
1) At $42 Billion, it will wipe away its $19 billion cash reserves and throw it into the red
2) Yahoo is a fading star and has only one valuable asset Flick/r
3) Yahoo and its products are built with open source (PHP and FreeBSD). Microsoft will obviously waste years converting it to use inferior propriety technology
4) Microsoft will still have no worthwhile internet content business with which to challenge its competitors
5) Every attempt by microsoft to expand away from Windows and office has been a failure
6) Microsoft suffers from a chronic lack of innovation, bureaucracy and inability to compete with more nimble competitors like Google.
Note to US/EU - please dont block this deal - let microsoft implode!