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Microsoft will spend $40 billion on Yahoo for its people, Bill Gates told an audience at Stanford yesterday. "Yes, the advertisers and the number of end users is good," Gates said, "but we'd put the people and the engineering as the key thing." Well, if that's the case, Mr. Gates, here's the good news: Yahoo just laid off a portion of its engineers. They need jobs. And the rest? Their 2006 retention packages just vested. Your shareholders would prefer you make them an offer directly. (Photo by cackhanded)