Yahoo has been drowning in mediocrity for a while now, and in my
opinion hasn't done anything that can be considered cutting edge on
innovative in years... Why then would they pass up the opportunity to
potentially corner the industry on a new type of online video
experience? It seems like a high quality video site like stage 6 would
make the perfect target for a company desperately trying to turn
itself around.

I have to absolutely agree... I don't know either why Yahoo didn't...
or for that matter if they didn't make a bid... I would hope that it
would have. I do know however... that there WAS some contention within
the DivX Inc. Board of Directors on Spinning/Selling Stage6 at what
extent. DivX Inc wanted to keep a 20% cut from any further Stage6
revenue... even after Spinning it off... And as we all know... enough
contention on the topic that Board members and staff walked out.
There's unsubstantiated "gossip" and "rumor"... (its funny that even a
rumor or gossip can be unsubstantiated...) "rumor" that Google has at
the last minute convened an emergency Board meeting... to finalize a
possible purchase of Stage6 at $750 million dollars.
LOL.
It is funny though... that some of these Search-Engine Giants moving
into video streaming... haven't either made a bid... or announced an
intent of some kind...