If your house was worth $500,000 and someone offered you $810,000, would you sell it?
Well, that's the equivalent % over reality that Microsoft offered Yahoo. And, of course, Yahoo fought it. Jerry Yang is a billionaire, so, a lot of extra money doesn't matter to him. However, he's done his stockholders a grave injustice. At Yahoo's current stock price ($22.73), that amounts to a $13-billion loss in market capitalization.
As an aside, the companies that are truly positioned to take advantage of the next generation of the Internet are Google and Apple. Of course, there will be others that crop up, but those two have what it takes.
And, compliments of BusinessWeek, here's a comical Mad Libs knock-off for a Yahoo resignation letter.