Sheldon suggested the other day that Microsoft Corp. (NASDAQ: MSFT) should split off its web search and services arm so that it could fit better with a possible Yahoo, Inc. (NASDAQ: YHOO) combination. Instead of entertaining that notion, Microsoft still has some cash to spend to ensure, for now at least, it still has a growing presence in the web search and e-commerce arena.

To that end, the company announced this morning that it will spend $486 million to purchase Greenfield Online, Inc. (NASDAQ: SRVY) as it swiped an earlier takeover offer from the Quadrangle Group with its $15.50 per share offer. Microsoft's offer of $17.50 per share is a 10% premium over Greenfield's closing price this past Monday, when the offer was received without Greenfield knowing the origin. That is, until today.

Microsoft wants control of www.ciao.com, one of Europe's leading price comparison shopping search engines. Does Microsoft really think owning a leading consumer review and price shopping search engine will bolster its Microsoft Live platform? Since it couldn't compete in the U.S. against Google, Inc. (NASDAQ: GOOG), perhaps Microsoft is turning to international purchases as a second competitive act. Greenfield also has an "internet survey solutions" division that Microsoft will sell to an undisclosed buyer.

Stock futures were lower Friday morning after Dell reported disappointing results after the close Thursday. Rising oil prices due to Gustav also weighed in on investors. This morning, some economic data on personal income and spending among others will be released. Perhaps it could give the market some positive news ahead of the three-day weekend.

Dell Inc. (NASDAQ: DELL) shares are dropping about 10% in pre-market trading after the computer maker reported a 17% drop in profit to $616 million, or 31 cents per share as margins were hurt by slashing PC prices as Dell tried to fend off competition in overseas markets. Sales rose 11% to $16.4 billion, ahead of Wall Street's view for $15.9 billion in sales.

Staying with earnings, Marvell Technology (NASDAQ: MRVL) shares are also down -- over 3% in after-hours -- after it reported its results after the close Thursday. The chipmaker that supplies Apple's iPhone and Research In Motion's BlackBerry beat expectations but gave a conservative outlook, forecasting current quarter sales below analyst expectations.

Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) which stocks have been shooting upward the past few days. The climb in share prices follows a period of downward spiral. BusinessWeek is trying to estimate how much investors have lost in its damage report.

When Greenfield Online Inc. (NYSE: SRVY) went public in 2004, the shares spiked, hitting $24. But, as time went by, the company had troubles meeting Wall Street's expectations and the stock price eventually fell to $4.50 (in late 2005).

It was rough, but Greenfield was able to restructure things, and the stock price has tripled since 2005.

Despite this, it hasn't been enough for the folks at Greenfield and today the company announced it is going private in a $426 million transaction (or $15.50 per share). The private equity sponsor is Quadrangle Group LLC, which specializes in media and communications.

Greenfield has a nice business. It provides consumer research and uses dot-com approaches (such as comparison shopping engines). The company also has been effective in moving into foreign markets.

In Q1, revenues increased 13% to $30.9 million but there was loss of $113,000 or $0.01 per share, which included various charges, such as for a class action settlement.

So far in today's trading, Greenfield's shares are up 14% to $15.23.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

MOST NOTEWORTHY: Greenfield Online, Simpson Manufacturing and Cooper Industries were today's noteworthy initiations:

• Merriman assumed coverage of Greenfield Online (NASDAQ:SRVY) with a Buy rating. The firm's sum-of-parts valuation implies 50% upside to the stock and they believe the current valuation does not reflect the fast growing, high margin Comparison Shopping segment.
  
• CIBC initiated Simpson Manufacturing (NYSE:SSD) with a Sector Performer rating and sees near-term earnings risk given the company's exposure to the U.S. housing market.
  
• Cooper Industries (NYSE:CBE) was initiated at UBS with a Buy rating and $58 target. The firm expects Cooper to benefit from positive secular trends in energy efficiency and infrastructure investment.

OTHER INITIATIONS:

• Baird initiated Large/Mid-Cap Banks with an Evenweight view, starting Comerica (NYSE:CMA) and PNC Financial (NYSE:PNC) with Outperform ratings and a $50 target and $75 target, respectively.
  
• Wachovia started Henry Jack & Associates (NASDAQ:JKHY) with a Market Perform rating.

Advertisers realize that there is no source like the internet for seeking current consumer opinions. A leader in the art of eliciting those views and organizing them into actionable form is headquartered in Wilton, Connecticut.

Greenfield Online (NASDAQ: SRVY) provides internet survey research services that measure consumer interest in new products, test new advertising campaigns and track brand awareness. It gathers demographic data from panels of North American, Latin American, European and Asian survey participants and comparison shoppers and then integrates their views about broad arrays of consumer products and services. The firm's client list includes Google (NASDAQ: GOOG) and eBay (NASDAQ: EBAY).

Greenfield Online pleased investors earlier in the month, when it reported Q3 EPS of 12 cents and revenues of $32.2 million. Analysts had been expecting ten cents and $30.1 million. Management also guided FY07 revenues to $124-$126 million, versus consensus of $123.32 million. Needham subsequently upgraded the stock to "strong buy" and declared a $20 price target. The shares popped on the news and then began consolidating the gain in a bullish "pennant" pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

MOST NOTEWORTHY: National Grid, Shire Plc, On Semiconductor and Enbridge were today's noteworthy upgrades:

• Deutsche Bank upgraded shares of National Grid (NYSE: NGG) to Buy from Hold as they believe the Keyspan deal will be positive for shareholders.
• Goldman upgraded shares of Shire Plc (NASDAQ: SHPGY) to Buy from Neutral and added the stock to their Conviction Buy List on valuation and expected gains in the ADHD market.
  
• On Semiconductor (NASDAQ: ONNN) was upgraded to Outperform from Market Perform at Wachovia on valuation.
  
• Enbridge Inc (NYSE: ENB) was raised to Sector Outperformer from Sector Performer at CIBC World Markets, as the firm sees an attractive 3-year return potential as new projects come into service and expects the stock's relative underperformance to come to an end.

OTHER UPGRADES:

• Visteon Corporation (NYSE: VC) was upgraded to Neutral from Sell at Goldman Sachs.
  
• RSC Holdings (NYSE: RRR) and Greenfield Online Inc (NASDAQ: SRVY) were upgraded to Overweight from Equal Weight at Lehman Brothers.
  
• Lockheed Martin Corporation (NYSE: LMT) was raised to Buy from Neutral at Merrill Lynch.
  
• Stifel upgraded Health Care REITs, including Healthcare Realty Trust (NYSE: HR), LTC Properties Inc (NYSE: LTC) and Ventas Inc (NYSE: VTR), to Buy from Hold.