It seems things are finally falling into place for Microsoft to buy Yahoo!. First Google was forced to abandon their Yahoo! deal as they came under severe pressure from Microsoft and legal sources. Now, Jerry Yang has encouraged Microsoft to go for it. I am not sure if Microsoft will offer the same price they offered a few months ago, but it seem Jerry has finally come to grips with reality.

Yahoo! has been a mess, and Jerry knows it too. I love Yahoo! and I think they have been great for the search industry. But this business is very tough and unforgiving, and that is why Yahoo! is where it is right now. Yang promised to turn Yahoo! around when he took over, but I am not sure such an end is in sight under his guidance, so why not cash out now while you can?