Yahoo says, "Buy Me"

It was not too long ago that Yahoo was around $41/share and rebuffed a takeover bid bye Microsoft.

Now, a mere few month's later, Yahoo is begging to be purchased @ about $13.9/share.

Now, as I see it there are 2 basic choices for M$,
1) buy Yahoo and do with it as it was going to
2) let them sink to say 5-7 and offer or.....
3)let them fail and fill in the advertising void.

Which is in M$'s best interest????

Just found this:

"Google said Wednesday it is ending its bid for a joint search advertising partnership with Yahoo to avert "a protracted legal battle" with regulators."

We all know thats the deal Yahoo REALLY wanted.

This put's further pressure on Yahoo.

With all this, Yahoo was/is in talks to buy AOL?????

Source