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! 

The market, to no surprise, doesn’t like the news and shares for Yahoo have plunged 21% in pre-market trading. Bloomberg reports that Citigroup Inc. has downgraded the stock to a “sell” after the news came out.

Yahoo’s future is not as bleak as some apparently want to believe. It is still  arguably the #1 or at worst #2 brand on the Internet. They are currently rumored to be in talks with with Google to iron out an advertising deal, and there are also rumors of a possible deal with AOL Time Warner.

I’m sure this is not the last time we’ll be discussing Yahoo! mergers this year.

Even though it is still possible for Microsoft to initiate a hostile takeover bid, the issue seems have simmered down over the weekend and does not look very likely.

Essentially, Microsoft stated that it will not be raising its bid to aquire Yahoo, even though the company came through with decent earnings. Good. Great. Super. Now all we need are the Yahoo shareholders to reject this offer.

Yahoo’s board of directors is recommending that this hostile takeover is rejected. Normally, I think board of directors are full of it, but I  do agree with this opinion.

Microsoft would ruin Yahoo. It’s not really because they would want to ruin them, I’m sure they have some great ideas that make complete business sense. The problem is that Microsoft has already become too big. The entire company can easily be compared to the disaster that is Vista. Vista, for those fortunate enough to not be aware of, is Microsoft’s newest operating system. It is slow, bloated, frustrating and seemingly has a split personality.

A merged Microsoft/Yahoo offering would be equally bloated, frustrating and definitely possessing a split personality. The thought of Microsoft’s marketing team frothing at the mouth over the cross marketing potential of the world’s #1 website makes my stomach turn. For Yahoo! shareholders, it should make yours too.

Vote No. Vote often.