Nearly a week into the three-week Microsoft ultimatum, there are a sudden flurry of developments and rumors… enough activity that (I imagine) something significant will happen shortly:

- Microsoft gave Yahoo a three-week notice
- Yahoo announces today that they will test ads with Google
- Microsoft responds to the announcement with force and threat
- Meanwhile, Yahoo is negotiating with AOL to merge… discussions are apparently quite far along
- … Enough so that Microsoft and News Corp might be joining forces to improve their Yahoo bid

AOL + Yahoo sounds like a mess.

I already like Microsoft + Yahoo – and adding MySpace (and News Corp’s content properties / relationships) makes it even more attractive and powerful.

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