Micro-hoo: will that take a place?

Microsoft believes that he's bluffing and plans to pursue this deal through to a conclusion.
In an interview with my colleague Ina Fried on Wednesday, Bill Gates made clear why Microsoft's in love with this grand vision of a future "Micro-hoo."
"We think that the combination with Yahoo would accelerate things in a very exciting way, because they do have great engineers, they have done a lot of great work. So if you combine their work and our work, the speed at which you can innovate and get things done is just dramatically more rapid," Gates said. "So it's really about the people there that want to join in and create a better search, better portal for a very broad set of customers. That's the vision that's behind saying, 'hey, wouldn't this be a great combination?'"

I'm still not convinced that this won't turn into a disaster, with all the messy corporate-culture clashes that always attend mergers--but on a massive scale. Still, Gates and Steve Ballmer believe that they can successfully steer clear of the potholes, and they're willing to put more than $40 billion behind that bet.

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