It is obvious in retrospect never at the time. Like shorting financial stocks three months ago (or yahoo) for that matter. If they knew, they would have acted differently.
Anyway, I don't think it's a matter of catching up to Google in search. It's a matter of finding a business model that makes them money. For Yahoo still to be looking for one is kinda like a 53 year old hanging out in a Uni bar all day & getting excited about Oweek.
i strongly disagree. indeed the only party that didn't see the msft deal as a no-brainer were in management and the board.