I was just speaking to one of the leading M&A bankers in the Valley this morning about this exact issue. Microsoft and Yahoo! have not only been two of the most active acquirers of startups of late, but the competition between them and Google has resulted in healthy auctions and valuations. I suspect Yahoo’s board will ask for more money and get it, but if this deal goes through the resultant reduction in competition (i.e., the absence of one of the three large Internet media companies) is negative for a number of constituents.