Yahoo needs Microsoft more than Microsoft needs Yahoo.
Yahoo has value and even many advantages over Google. For example, Google has a better search engine, while Yahoo provides a better news service. The problem is that Yahoo hasn't been able to capitalize this strength and synergy with Microsoft is the best thing that this company can do for its shareholders.
Currently, Yahoo is trading 60x earnings, and I don't see them getting significantly better anytime soon. Microsoft is a solid company trading 16x earnings and can live without the expensive $44 billion investment. I bet Microsoft will call out Yahoo on their bluff.
The only one benefiting form Yahoo's delays right now is Google. Microsoft and Yahoo need to work together if they want to provide competition to the Internet giant.
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