UPDATE for the Microsoft Yahoo! Deal: Microsoft, Yahoo! and Google. Giants in Combat

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An excellent article from the Economist: Microsoft, Yahoo! and Google. Giants in combat.

THIS was the week that seemed to confirm the new balance of power in the technology industry. Computing is moving online, away from the desktop—and away from Microsoft, the desktop-software leviathan, to Google, master of online search.

Microsoft's determination not to lose the struggle became clear when it bid $44.6 billion in cash and shares for Yahoo!, an ailing internet giant. If the deal goes ahead, it will reshape the technology industry and clear the way for a straight fight between Microsoft and Google for dominance in the internet era. But whether Microsoft's bid succeeds or fails, it changes how all three firms are perceived.

And another one from cnn.money.com: Microsoft Seen Losing Ground In Next-Gen Ad Technologies

Microsoft Corp.'s (MSFT) plan to buy struggling Yahoo Inc. (YHOO) for $44.6 billion could cause the software giant to lose ground to arch-rival Google Inc. (GOOG) in the race to develop next-generation Internet advertising technologies.

Microsoft Chief Executive Steve Ballmer has argued that his plan to snap up Yahoo would create a more competitive Internet search and advertising marketplace. He pointed out that Google controls about 75% of the worldwide search advertising market, compared with 18% for Microsoft and Yahoo combined.

Financial and industry analysts agree that Ballmer's bid could be Microsoft's best chance to narrow that gap with Google, but a growing number are expressing concern that a merger would distract Microsoft and Yahoo at a critical moment when Internet giants are focused on creating systems that will allow advertisers to easily place ads on all types of media, including the Internet video, mobile phones, radio and television and print publications as well.

For a previous press review on the Microsoft Yahoo deal check my posts UPDATE for the Microsoft Yahoo Deal, UPDATE for the Microsoft Yahoo Deal: Microsoft, Google Come Out Lobbying and Google troubled by Microsoft move. A quick press review on the Microsfot Yahoo deal

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