Google has taken two entities head on. On one hand Google challenged Yahoo; firstly on Search front and then on a lot of other fronts. On the other front, there is Microsoft who is threatened by Google's web based office applications. Among these three, only Google seems to be completely belonging in the Web 2.0 eco-system, while Yahoo is the runner-up(mainly due to Flickr) and Microsoft seems to be totally out of sync in the new regime of user-control, mash-ups, communities etc. Further, the lucrative market of mobile search is also a field where Microsoft and Yahoo would have to toil a lot to take on Google.
However, this particular news of tomorrow is only a rumour today. Most of the newspapers have put a question mark in the end of the news. WallStreet Journal has put up a news as
'Microsoft, Yahoo Discussed Deal'
"Microsoft and Yahoo discussed a possible merger or other matchup that would pair their respective strengths, say people familiar with the situation. The merger discussions are no longer active, these people say, but that doesn't preclude the two companies from some other form of cooperation."
Here is a video commentary of one of WSJ analysts on WSJ Online. Watch it
here
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