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Acquiring Yahoo would be essential for enabling Microsoft to succeed in the online advertising business, where both companies have been chasing Google--which silenced cynics with their report that income jumped 31 percent to $1.31 billion. Revenue swelled 42 percent to $5.19 billion compared with the same period last year.

The economy may have cooled in recent months, but the battle for tech supremacy just gets hotter and hotter.

© 2008

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