Microsoft Crafts New Mobile Strategy With Yahoo!

There’s more to the proposed takeover of Yahoo! by Microsoft than a scramble for advertising dollars. There’s something in the air.At the recent World Economic Conference in Davos, Google Chief Executive Eric Schmidt said mobile Internet services have the potential to spark a “huge revolution” in the coming year, comparable to the “re-creation of the Internet” and the personal computer.Microsoft’s bullish on things mobile, too–and has been eyeing Yahoo!’s mobile assets. In the letter sent to Yahoo!’s board on Thursday night, Microsoft Chief Executive Steve Ballmer cited the companies’ “combined ability to focus engineering resources that drive innovation in emerging scenarios such as … mobile services,” as one reason for a tie-up.”Mobile is clearly a critical part of this deal going forward,” says Michael Gartenberg, an analyst at JupiterResearch. “It shows Microsoft’s recognition that, in the future, the desktop will not be as important as some mobile initiatives.”

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