This is big news I think! It is not the first time MS has tried it, but since Yahoo just hit a four year low on their stock values, it is said that they will consider it this time. It would be the first real shot MS would have at competing with Google and all the stuff they do and offer as the most popular and used search engine going.
I personally think MS should stick with what it has always done (not necessarily best either) - software. Google offers online tools, but it isn't really standalone software persay. MS should stick with their specialty and not start trying to be the latest and greatest search engine... Yahoo needed an overhaul a long time ago, and I'm not sure MS are the ones to give it to them!
Oh well it'll be interesting!
