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And in Related News, It May Not

by John Paczkowski
Posted on May 2, 2008 at 5:02 AM PT

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ballmer_yahoo_dog.jpgMicrosoft (MSFT) may launch a hostile bid for Yahoo as early as today. That’s the big news this morning from those mysterious “people familiar with the situation” who are quick to note, as they always are, that the “situation” is still fluid and Microsoft may also drop the bid entirely or sweeten it a bit.

Meanwhile, “people familiar with the matter” say that Yahoo (YHOO) may launch something in the next few days as well: a deal to carry search advertisements from Google (GOOG) alongside Yahoo search results. Such a deal would likely not be the sort of broad pact over which Microsoft has preemptively cried foul, but a non-exclusive arrangement open to the companies’ competitors as well. Under its terms, a real-time auction system would be used to select the most lucrative ads for a given search query from among those sold by Yahoo and Google. Microsoft too, if it were willing to participate.

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About John

John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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