On the morning of February 1st 2008, Microsoft announced an unsolicited bid of $44.6B hostile for Yahoo!, and by the end of the day, Microsoft had lost $20B in market capitalization. Where does this leave Microsoft's open source strategy and the analysis thereof?

Yahoo! was a pioneering "internet company", one of the first to really create and capture value of a world newly web-enabled. And like many of these so-called internet companies (Google was another), Yahoo! built it infrastructure on open source technologies. Why? Better, faster, cheaper: Dave Filo and Jerry Yang were still poor college students back in the day, but smart. (As were Sergey Brin and Larry Page, but that's another story.)

Microsoft has offered to buy the search engine company Yahoo for $44.6 billion (£22.4 bn) in cash and shares.

The offer is 62 percent above Yahoo's closing share price on Thursday