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Apr 7 2008 11:19AM EDT

But What Else Could Yahoo Do Now?

There is plenty of coverage all over the Web about Yahoo today deflecting Microsoft's ultimatum to concede to a merger or face a fight. But at this point it's hard to imagine what Yahoo management is thinking. Clearly, by now, no one else is going to rescue the company. If Microsoft were to decide not to buy Yahoo, the stock price of Yahoo would dive. This seems to be an extreme pickle for Yahoo, with no good way out.

As my favorite headline so far (on VentureBeat) says: Microsoft puts Yahoo in a headlock and applies noogies. Wants lunch money in 3 weeks -- or else.

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