Microsoft, Yahoo, Google, and Facebook: War of the Worlds II
readwriteweb.com
readwriteweb.com
IMHO, what they need to do is to just invest crazily into search and try harder to compete with Google. Everything Google is doing is copy-able, they just need to throw more money and brains into it.
That might be a necessary condition but it isn't a sufficient one. They could just as easily create a money-and-brains soup. Culture and organization are also critical factors.