RPT-Culture clash means Microhoo! easier to say than do

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By Daisuke Wakabayashi

SEATTLE, Feb 1 (Reuters) - Yahoo Inc's (YHOO.O: Quote, Profile, Research, Stock Buzz) purple T-shirt and jeans-clad employees could soon be shopping for dress-shirts and khaki pants.

If Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) manages to buy the ailing Internet icon, it faces a clash between Yahoo's free-wheeling corporate culture and Microsoft's more button-down workplace, where even casual meetings often require PowerPoint slides.

That culture clash is just the beginning of the challenges ahead for Microsoft if its $45 billion offer is accepted.

First and foremost, Microsoft must convince Yahoo's best and brightest to bury years of Silicon Valley animosity toward its wealthier neighbor to the north and work together to fight a common enemy: Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz).

Meanwhile, Microsoft's top brass will have a Noah's Ark of a Web company -- with two of everything -- that needs to be molded into one cohesive brand.

"It's definitely going to be a long process," said Toan Tran, analyst at Morningstar, noting Yahoo's own restructuring adds another layer of complexity to what already would have been an arduous integration.

Microsoft Chief Executive Steve Ballmer launched his charm offensive on Friday, telling a conference call for analysts that Yahoo employees should be "very, very excited" about Microsoft's offer and that the two companies share a common vision on the Web and will be more competitive together.