With all these talk about Microsoft offering to buy Yahoo, I just have one question...Why is Google so scared? From their post on their official blog:
The openness of the Internet is what made Google -- and Yahoo! -- possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place.
So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation.
Are they just acting scared to try and get the deal pushed through, making both Microsoft and Yahoo think it will really hurt Google's business, and to help the regulators think, maybe we should allow it to happen (as it will actually spur more competition)
Or are they actually scared, are they really worried that a Yahoo/Microsoft union would really cut into their business and thus their profits and in the end their stock price.
My Thoughts:
(Strictly opinions of mine, and pretty much a big rant...)
I'm sorry but here is a little news for you Google, if you didn't already know, YOU ARE A PUBLIC COMPANY, despite your "Don't be Evil" policy (http://investor.google.com/conduct.html), you are responsible to your investors...You will do anything to make more money. Period. I love Google products, don't get me wrong, I use em all (Gmail, Analytics, Calendar, Docs...and the list goes on). Number one on you conduct list is Serve Our Users, but what you are scared of is no longer being the top dawg on the internet user list...
From the most recent (2/6/2008) Alexa.com traffic ratings :
1. www.yahoo.com
2. www.google.com
3. www.youtube.com
4. www.live.com
5. www.msn.com
As it sits right now, you outdo any other single company, however if Microsoft and Yahoo hook up, lookie there, Microsoft now has more users than you...and that is scary. You would no longer have the most users, but in reality if the union does happen, many users may migrate to Google products, due to shear dislike of Microsoft, or even more importantly, far superior products (Gmail is the only way to do email).
As for Google's fear of Microsoft hurting the internet, "It's about preserving the underlying principles of the Internet: openness and innovation.". Thats BS, you guys don't want Microsoft to steal users and money. You guys absorb as many companies as Microsoft, and take their products, slow innovation in the Google Cog, and then monetize it, because it comes down to keeping your stock price up. Microsoft innovation has given us many innovative things, most recently a huge gaming revolution with the Xbox 360. And lets face it, the PC industry would not exist today without Microsoft way back when.
I think it would be a great thing if Yahoo and Microsoft would unite, it would actually bring some competition back to the search space, because lets face it, Google is the best, but a little stagnant, I'd like to see some innovation in the search space (Particularly image search).
Anyways, enough for now...Lets see where the future of the internet goes...

I don't think Google is scared one iota.
They're just raising a stink because they want this takeover to be as lengthy and expensive as possible.
As far as MS and innovation goes, I don't usually put those two words in the same sentence... unless there is a "has no" between them. Aside from the 360, which bares its own division at MS, 'stagnant' has defined MS's output over the lifetime of the company. They don't innovate. They copy, buy out, and bully their way around the industry. I agree Google will do (or does) the same sans competition. Because, honestly, who wouldn't?
Yahoo! is different. They do innovate. What they don't do well is make money. Hence the layoffs and dismal outlook for the company. If Microsoft/Yahoo happens, my hope is that MS adopts Yahoo's creative open/source mentality and challenges Google, instead of assimilating the company like so many others in the past and valuing only their 300 million email accounts...