Microsoft is turning into quite the hussy. Shortly after breaking up with Yahoo! before they even officially dated, Microsoft has been seen holding hands with Facebook…. and they might even kiss.

I never liked the proposed Yahoo merger. This one, however, might have legs.

Firstly, lets ignore the $15 billion valuation that Facebook claimed to have in October. That number is just silly. Facebook is still a new kid on the block, they’re still working on a business model that will work in the long run.

Although it is still growing like vile weed, I have noticed that fewer and fewer people on my Facebook account update their profiles in a regular basis. Facebook could just be an Internet trend. A flash in the pan. Not a $15 billion dollar company.

Microsoft could bring a lot of help to ensure that Facebook becomes a long term juggernaut on the Internet. They have the reach, the knowledge, the experience and most importantly, they are just as evil.

Facebook has built a reputation for having poor privacy controls and whoring out users to advertisers. Microsoft has a reputation for whoring out user’s rights to media lobbies. Together they can ruin your online experience and share it with the world.

Seriously though, these two firms would benefit from each other. Microsoft would gain a growing Internet database of consumer information, Facebook would get a grownup to steer it in the right direction.

I say go for it! 

One of the hallmarks of a healthy economy and equity market is a strong Mergers and Acquisitions sector. Nothing gets bulls running like one company devouring another. This is true even when one of the companies is helpless and injured (see Bear Sterns).

Today we learn that there are rumors that T-Mobile is looking into combining with Sprint. Although in the US Sprint is the larger company, T-Mobie’s German parent Deutsche Telekom AG could easily handle the required costs. Sprint has been struggling financially of late, having its credit rating cut to junk status by Standard & Poors last week.

If successful, the new entity would represnet the largest wireless company in the US.