That is a ton of money to purchase a competitor who has not developed an OS to date.
I believe this is not a financially sound offer... To much money for too little return.
Microsoft need not worry about anything until another OS is developed (and even then).
Granted, talk about web OS's is flittering about the NET but the reality is Microsoft remains unchallenged.
(my opinion) If Bill Gates was still at the head of MS this offer would never have been made.
Google and Yahoo remain competitors only in the online market.
No OS, no Internet for the moment. (Do not even think about webTV's failure)
Creat a Box that is just plug and play; bootable to the Interent with no OS sort of like a network firmeware boot and we can talk about the demise of Microsoft. Until then no need to purchase even the largest of online competitors!
Just my Viewpoint
Richard