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Yahoo-Facebook merger could be win-win

A Yahoo acquisition of social-networking site Facebook could be a boon for both companies, analyst Mark May of Needham & Co. says.

The Wall Street Journal (subscription required) and MarketWatch (both are Dow Jones publications) have reported that Yahoo is talking with Facebook about buying it for as much as $1 billion. Both cite unidentified sources close to the companies.

A Yahoo spokeswoman said the company does not comment on rumors, and Facebook did not reply to an e-mail seeking comment.

May said he has no insider knowledge about whether the reports are accurate or whether a deal is imminent. … Read more

Face-off with Facebook

How many sites can the craze sustain?

It might be a while before we see a big shakeout among youth-focused social-networking sites. The current leaders in that space, Facebook and News Corp.'s MySpace.com, have recently faced criticism over privacy controls.

That hasn't stopped their breakneck growth, but a new crop of competitors with high aspirations is hoping to carve out a niche.

Many college students have read about the success of Mark Zuckerberg and a few friends, who started Facebook, essentially an interactive online directory, during their sophomore year at Harvard University.

Now that Zuckerberg has set … Read more