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The title is total linkbait. "a number of potential options" does not equal "selling" - not to say that's not their intention, but it's a large jump to make.

It seems Yang and co. are progressing on the "defining Yahoo" question - they've determined it's "an internet company."

This "memo" seems more like it was written as a press release. At least, PR-speak abounds. Is it standard practice for large companies to write employee memos as such?

They need to fire everyone. I remember when Yahoo was a solid tech. company - before Google.com. Then they started the spyware shit, and never got out of that mindset.
In my opinion, the only thing Yahoo has that is worth anything is Flickr. Otherwise, they are AOL without the dial-up subscribers.
I wouldn't say that completely, they do have other products that people seem to love. Yahoo mail is still very popular. Yahoo finance is still very popular also. They do have a bunch products they bought that they never seemed to be able to use properly (delicious, the now sold zimbra...) I really think they should have ignored search a few years ago and continued developing products like Flick, delicious, zimbra and other cloud services. They had the engineering talent for it.

Maybe I'm way off but I still think they did do good ideas that they never fully developed.

Regardless, I feel that any company buying Yahoo is wasting their money, unless Yahoo is willing to sell Flickr by itself.
I remember when Microsoft tried to acquire Yahoo sometime back and how difficult Yahoo played. The company is still profitable to the tune of about $1 billion a year. even with their different properties that are still popular I don't think it's unfair to say the M's future seems uncertain at best. Weighing their options while they're still attractive to potential acquirers is not a bad idea.
I think M already got out of yahoo what they wanted. Why buy the cow when you can get milk for cheap? It appeared like a win-win for both now only if yahoo could execute on their mission to be a great media company...