I never thought that I would ever say this, but Dan Farber is wrong and the New York Times and Henry Blodgett are right. Microsoft has wasted billions of dollars, and many years, trying to succeed on the web. Buying Yahoo won’t help them get better. Instead, as Blodget writes, they should swap their internet division for a stake in a combined web company, and concentrate on the enterprise market. Yahoo won’t fit into Microsoft, but a combined unit could be a competitor for Google.

UPDATE: Scavo thinks buying SAP would be a mistake. He’s probably right, but I still say it is a smaller mistake than buying Yahoo.