When I suggested two months ago that Microsoft should follow Rupert Murdoch’s strategy in winning Dow Jones, I didn’t imagine that they would link up with Murdoch. However, I must say that the combination of Yahoo, My Space and Microsoft is probably the strongest challenge to Google imaginable. Yahoo has the international reach, My Space is becoming the music and entertainment social network of choice and Microsoft continues to refine its operating systems in PC’s, TV and Mobile.
As for Yahoo, the prospect of merging with AOL is like two drunks leaning against a lamp post. The stability is only temporary. This fight will be over in a month if Rupert and Steve Ballmer can reach an arrangement.