From Microsoft Subnet editor, Julie Bort: Well, I'm eating crow. Just last week I declared the Microsoft/Yahoo deal to never amount to anything more than a rumor. Today, Microsoft says it is willing to shell out $44.6 billion to acquire the search site. Microsoft and Yahoo make a powerful pair to compete with Google, whose search engine dominance is becoming increasingly "evil." (Complaints abound as to exactly how Google ranks its search results -- and even how it ranks the placement of its keyword-sensitive ads.) This merger, should it go through, will make it a lot more likely that the EU will give the OK to the Google/DoubleClick marriage.

A story in Network World reports on a conference call with Microsoft on Friday:

"Microsoft expects the market for online advertising to almost double in size over the next three years, from $40 billion in 2007 to $80 billion by 2010. A merger will allow it to realize economies of scale and reduce capital costs as it addresses this market, it said.

I can't help to root for the underdog. In this case I think the underdog is the Microsoft/Yahoo team against No. 1 seed Google. Go team!

See also:

Buzzblog on Microsoft/Yahoo deal.

GoogleGal on Google/DoubleClick gets the nod

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