Yahoo! Pack it up pack it in...

There comes a time in a company's lifetime when insurmountable competitive forces and unfavorable industry dynamics draws the business model into the decline phase. Yahoo! has approached that moment.

In our last write-up on Yahoo! seen here, we outlined several steps management and the board should take to increase shareholder value culminating into the inevitable final step - a sale.

At the time we mentioned Microsoft or traditional media conglomerate companies but now we think a foreign company makes sense, with Baidu being the most logical acquirer.

Baidu has bigger aspirations than just China. If it wants to challenge Google then buying Yahoo! makes sense.