With the Yahoo lawsuit monkey-wrench thrown in a couple month’s before the highly anticipated Facebook IPO, here’s a different direction to go for Zuckerberg and his board. Take the $10B they’ll raise at the IPO, plus proceeds from their recent financing mojo, and just acquire Yahoo — lock, stock, and barrel — oh yeah, and patents. If Facebook owned the problem, they wouldn’t have to pay ‘themselves’ any settlement.

Of course, there has to be other value in Yahoo there as well. And without using cash, it would be even more interesting. Perhaps an all stock transaction for a 51% controlling stake in Yahoo — at today’s close it’s an almost $18B market cap company — and then just end the litigation. With interesting properties like Yahoo Finance, Sports, yahoo mail, a search engine, their advertising business, and more — it might make sense, and it could help FB’s valuation going forward. And it would probably make a lot of weary Yahoo (ticker symbol: YHOO) shareholders very, very happy.

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