Yahoo's stock price has dropped to well below half of the price Microsoft was going to offer for it. Microsoft claims not to be interested, but if you ask me, I think Microsoft would buy Yahoo out just for the sake of acquiring it's search engine and advertising businesses, user base, and some of it's properties.
While Yahoo is still a giant in it's own right, right about now, it's looking like a Microsoft lunch and goody basket. I don't know what the aftermath of such a purchase would be, other then I'd probably go ahead and close out my old Yahoo mail account. I'd probably close out my mybloglog account too. I don't really like using any of Microsoft's web services. It's bad enough I use their operating system on my laptop (for the wireless nic drivers that is).
I don't see Yahoo coming out of this economic recession fully intact. I think Microsoft is going to put the squeeze on the old Yahoo. Shame too, cause I really liked their commercials, lol. Yahoooooooo!