Microsoft

(MSFT) - Get Report

should buy

Yahoo!

(YHOO)

, Cramer said on his

"RealMoney" radio show Friday.

Cramer owns both Microsoft and Yahoo for his charitable trust,

Action Alerts PLUS.

Cramer said he's been telling people to buy Yahoo!, which, along with

Google

(GOOG) - Get Report

, is a top competitor in the Internet information arena.

The only problem is Microsoft, which wants to get into the Internet search business, might believe it can pose a threat to Yahoo! on its own, Cramer said. But Microsoft needs to recognize that it will more than likely not be able to compete against Yahoo!

Yahoo! can't be caught by Microsoft, he said. Buying back stock and raising dividends has proved fruitless for the company thus far. Therefore, Cramer believes it only makes sense for Microsoft to spend its money to acquire Yahoo!

There was a time a few months ago when

General Motors

(GM) - Get Report

looked like it was dying due to falling market share and rumors of bankruptcy, Cramer said.

But now, Cramer believes GM will be a player once again. The company's management has taken action and managed to buy back stock and get its healthcare costs in line. And even GM's automobile models are selling pretty well, he said.

Although it still might not be a blue chip, Cramer believes people should give General Motors some credit and respect, he said. He believes it is a buy.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Microsoft and Yahoo!

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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