Yahoo and Microsoft compete in most of the divisions. Namely search, sports, news, video, mail, chat and advertising. Probably, the news & media part of Yahoo is the only thing better than Microsoft at this point; Even, that I don't see remaining as such for long time with MSN coping up well.
So, if Microsoft would have acquired Yahoo they would have surplus of divisions and similarly talented people & infrastructure; Which would eventually lead to more layoffs and more time wasted consolidating teams, infra, design and resources.
So, if Microsoft would have acquired Yahoo they would have surplus of divisions and similarly talented people & infrastructure; Which would eventually lead to more layoffs and more time wasted consolidating teams, infra, design and resources.