It's Yahoo time

It's been a long time coming but I expect an announcement sometime soon of an advertising deal between Microsoft and Yahoo.

Microsoft's shares fell 8% overnight after a pretty poor set of quarterly sales figures. Yahoo's sales figures announced earlier this week also failed to impress. Meanwhile, Google marches on.

So I expect some sort of deal to come out soon. It is clearly in both Microsoft's and Yahoo's best interests. They can then focus on a single key competitor.

That battle though has only just begun.