The deadline passed on Saturday for Yahoo’s response to Microsoft’s bid to merge the two internet giants. Microsoft feels that they need to join forces with Yahoo for both companies to survive the Google onslaught. Alone Microsoft or Yahoo doesn’t stand a chance.  Marc Andreessen has a great analysis of the deal in his blog at:

http://blog.pmarca.com/2008/04/if-microsoft-go.html

The Wall Street Journal also has their take on the deal at http://online.wsj.com/article/SB120928269478947675.html?mod=technology_main_whats_news

Meanwhile Yahoo is busy making paid search deals with Google and has approached other companies like AOL/Time Warner about merging. It looks like Yahoo will try anything to avoid merging with Microsoft. There was no word today from Yahoo or Microsoft so stay tuned. Are they working out a deal or are they just avoiding each other. Something big is going to happen before this ends whether it’s a new company called MicroHoo or Yahoo will jump in bed with someone else to avoid the hostile takeover bid.

I’ll keep you posted!