"Today Yahoo made two announcements, they are going to stop their current music service and partner with Rhapsody to provide a new service, and they have also purchased FoxyTunes, a developer of a tool-bar plug-in that enables users to control more than 30 desktop and Web-based music players. This makes an acquisition by Microsoft all the more interesting since Rhapsody and the Zune Marketplace would become a sibling rivalry. With relevance to FoxyTunes none of the details have been released, but we will let you know more when the information becomes available."
Even as Microsoft tries to buy up Yahoo, it is still business as usual at Yahoo. I am assuming that they are hoping that a partnership with Rhapsody will position them better to compete with the other music services. At least as a subscription based service, no one really gets shafted by Yahoo shuttering their current service.