TheStreet.com's Jim Cramer says Filo and Yang own less than 10% of Yahoo! shares, so they can stall a deal but not stop it.

Two guys with less than 10% of the shares outstanding blocked this Yahoo! (NASDAQ: YHOO) (Cramer's Take) deal -- Jerry Yang and David Filo. I understand this logic. They are founders. They probably hate Microsoft (NASDAQ: MSFT) (Cramer's Take). They feel tremendous pride. They think that surrendering to Microsoft would be like giving in to the Evil Empire.

But if they felt that, they should never have brought the company public. Once you are public you are for sale, either in pieces or all together, unless you have one of those travesty two-classes-of-stock configurations that I think shouldn't even be allowed and have almost always been disappointing.

So what happens? I think the stock acted very well yesterday. It should have been down more. I think what happened is that arbs looked at the holders and realized that if they bought up enough stock that was for sale they could force a sale or a new board of directors. Might take a year, but if you can buy something at $24 and sell it at $34 a year from now, well, let's just say that is a big win.

Yahoo! Inc. (NASDAQ: YHOO) co-founders Jerry Yang, also the company's chief executive, and David Filo, the less visible of the two, should take Microsoft Corp.'s (NASDAQ: MSFT) $44.6 billion offer before the world's largest software company realizes how much it is overpaying for the company.

Better yet, Yang and Filo should "reject" Microsoft's initial offer because -- at least according to CNBC -- Microsoft may be willing to up its bid. That seems to be the market's expectation given that shares of Sunnyvale, Calif.-based Yahoo haven't hit the $31 offer level.

The Yahoo twosome need to get while the getting is good. As The Wall Street Journal notes, "If the deal goes through as presently constituted, Mr. Filo's stake would be worth more than $2.4 billion - not counting his options and other shares..Mr. Yang's stake would be worth more than $1.64 billion - again, not counting options and so forth."

During the height of the Internet bubble, both were worth more than $6 billion, the paper said.

The forays of Yahoo and Microsoft's MSN into original content already spooks content companies, so I bet if the deal through it will lead to a rash of mergers between old and new media companies. A combined company would likely do more original fare to attract advertisers and users.

This raises the question of whether Google Inc. (NASDAQ: GOOG) will start developing its own content given the likely merger and its recent disappointing results. Thoughts?

Another year, another round of Yahoo! Inc. (NASDAQ: YHOO) acquisition chatter. But would any company really want to acquire Yahoo? A market cap of over $33 billion should be enough to give any company pause, and with its growth rate and profitability teetering along at the age-old web giant, the price of admission is probably too high. Forget Microsoft (NASDAQ: MSFT) -- that would be the worst mistake the software company could make. Anyone else? A show of hands please?

Jerry Yang, now the company's CEO, and David Filo desperately want a turnaround at the company they founded. Once the highest flier on the web scene, Yahoo! has been dragged down by the rapid ascension of Google (NASDAQ: GOOG).

Yahoo!, which still has a lot to offer, made a bad bet on its version of text advertising while Google walked off into the sunset with a formula that worked. Add that to former CEO Terry Semel's apparent incompetence in trying to balance paid services against comparable free services from the competition, and you get a company that is in a funk right now.

Most likely, Yahoo! will not be acquired by another company, although it will continue to ring up partnerships to enhance its bottom line. Still, the core functionality of the company is at stake here, and there's miles of work to be done in 2008 -- which will be a make or break year. Even at $10 billion, it's hard to fathom who would want to purchase Yahoo! That means the company is in it for the long haul, and the competition from Microsoft and Google will only get hotter from here.