TheStreet.com TV Recap: Sifting Through Microsoft Rumor Mill

Jim Cramer, in kicking around the latest Microsoft(MSFT Quote) rumors in a TheStreet.com Web video Thursday, said the software giant "would ruin" Research In Motion(RIMM Quote) if it were to acquire it.

"Unlikely they'll be bought," Cramer said of Blackberry device maker RIM, a $45 billion market-cap company. Cramer told stockpickr.com's James Altucher that RIM was "incredibly overvalued on a takeover basis," although he believes it's a "supreme company."

Cramer said Microsoft is "so IBM(IBM Quote) in 1988, it's frightening ... they think they're a nimble growth company."

What about Microsoft buying Yahoo!(YHOO Quote)? Altucher asked.

"Yahoo! does have 10 bucks cash [a share] and securities, and [Chinese e-commerce company] Alibaba," Cramer said. "I think Yahoo! has the worst management of the Net," Cramer said. "Microsoft could vastly improve Yahoo! if they had it.

"Microsoft should bid 28 for Yahoo!, and get Yahoo!, but they won't because they think MSN (Microsoft's commercial Web site) is better than Yahoo!," Cramer said.

What Cramer found most intriguing was the prospect of eBay(EBAY Quote) buying Yahoo!.

Cramer said that in an eBay-Yahoo! merger "you'd see both of them fly up. Marriage made in heaven. I would love it. eBay actually could do something with Skype (its Internet telephone service). The combo would own auctions worldwide.

"Microsoft, other than aQuantive(AQNT Quote), feels it's better at everything than anyone," Cramer said. "Maybe it was at one time. But that's a terrible amount of hubris to run a company with."