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You may have heard rumors that Microsoft is courting Yahoo for a possible merger (if not, I’ll quote some things for you below), well the latest news from the grapevine (WSJ and then Mike) is that it was just smoke and mirrors. The deal is not, I repeat, not going through. That means YSoft! won’t be coming anytime soon, and you don’t have to cancel your Flickr accounts for sending your GeoTags to Microsoft’s intercontinental GPS initiative.

Before,

Stung by the loss of Internet advertising firm DoubleClick to Google last month, Microsoft has intensified its pursuit of a deal with Yahoo!, asking the company to re-enter formal negotiations, The Post has learned. –NYP

After,

For now, Yahoo doesn’t appear interested in a major deal with Microsoft, say people familiar with the situation. The Sunnyvale, Calif., Internet company’s course may largely depend on a new advertising-system upgrade, called “Project Panama,” whose delay last year prompted criticisms from investors and others that were directed toward the company’s management. Panama is now running, and Yahoo said recently that it expects the system to contribute to its revenue, starting this quarter. –WSJ

More rumors and misinformation as they become available.

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