In the recent months it had become quite clear that a deal with Microsoft was very important for the long term sustainability for Yahoo! However Microsoft with its bravado around Bing positioned itself to be cool towards the deal.
It seems that the attack from Google on Microsoft is having its desired effect. It appears that Ballmer is ducking for cover and rushing to the negotiation table with Yahoo!.
In my post on 11-June i had predicted that the Yahoo, Microsoft deal would be done in 2009, it appears that the pressure from Google could make Microsoft do the deal a bit sooner.