Zeev's Turnips Patch-No Politics (ZEEV)

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Microsoft-MSFT may seek alliance with YHOO-NY Post

Speculation that Microsoft (MSFT) and Yahoo! (YHOO) are seeking an alliance has been growing since Ian McAllister, a program manager at Microsoft's MSN division, wrote in his blog last week that he met with "senior players at another Tier 1 Internet company" about "ways in which our companies might work together."

Mr. McAllister did not mention Yahoo! specifically, but industry analysts are convinced that is the company to which he was referring. "I think it's clearly Yahoo!," said Michael Arrington, who edits the industry blog TechCrunch. "Microsoft and Yahoo! like each other and have worked together in the past." The goal of an alliance would most likely revolve around dethroning Google (GOOG) as the "king of the exploding search advertising market."