According to a report published by thestreet.com, Microsoft sent out an e-mail to its employees Friday, which they also made public,  in which Kevin Johnson, president of Microsoft’s platform and services business, laid out some of his thoughts on what Yahoo would look like after the merger.

Once the deal is completed, Microsoft would keep Yahoo in Silicon Valley, but the current companies headquaters may not remain its base of operations.

Johnson said “I know there is a desire for more competition in search and online advertising”

In the absence of combining the strength derived from the two companies, “there’s less innovation, less competition and less value being generated for consumers, advertisers, and publishers.”  Mr. Johnson went on to say “We believe our proposal is a compelling one and that the combination of Yahoo and Microsoft creates a more credible alternative to an increasingly dominant player in the advertising industry.”

Mr. Johnson further stated that the Yahoo brand would continue after the merger but indicated not all of Yahoo services would continue. “We are committed to build on the Yahoo brand.

Microsoft shares closed Friday at $27.68, down $4.79, or 15% since it made it’s offer of $31 a share for Yahoo.

Yahoo is up 48% to $28.42 since the offer.