You couldn't helped but be bombarded this morning by the news that Microsoft has made a rather rich offer to acquire Yahoo!   With all the doom and gloom spreading throughout the street its about time people has something happy to talk about.We'll of course see how long the euphoria lasts.  We are of course prone to the opinion that things are rarely as bad as the talking heads suggest- and rarely as good either.

But in the case of the Microsoft deal we are all for it.  Deal making has taken a back seat for the past few weeks as everyone struggled to understand the true impact of current events.  January deal volume was down to $31.06 billion- we'll off the torrid pace of last January's $65.7 billion for the same period.

Everyone likes a big deal, and everyone likes big tech deals.  The Microsoft / Yahoo tie-up has been in everyone's minds for at least as long as Google has been a public company.  Getting a big deal like this off the blocks is important.  Match it up with the Fed's recent actions and we'll like see a kick start in deal making that will assuredly trickle down to the mid-market.

Moreover, we think its a good deal at face value.  Google has been crushing these guys in search.  A tie up with Yahoo gives Microsoft's struggling "Live" search platform access to a huge number of eyeballs through the array of Yahoo properties.  Yahoo, in turn, can look to Microsoft for an array of resources that it struggles with on a solo basis.

The deal just makes good sense.  And beyond good sense, for today at least, it makes good news.