Company aims to increase profitability, prop up its deflated stock price, and focus on a smaller number of key areas, people close to the company say…

“Yahoo! Inc., owner of the most- visited U.S. Web site, will cut about 700 jobs as it reorganizes to compete with Google Inc., according to a person with knowledge of the plans…”

Yet another Yahoo executive departs the twelve-year-old company…

Just when Yahoo thought it was done with the tumultuous year of 2007, YSlow plug-in creator and Chief Performance Yahoo! Steve Souders has ditched his Sunnyvale gig, has announced that as of Jan. 7th he will be working in favor of the greener pastures around the Googleplex, according to his personal website.

San Francisco -- Yahoo Inc. said on Wednesday it would acquire Rivals.com, a site for fans of college and high school teams, bolstering the Internet media company's place as the top U.S. sports site in audience terms.

Jerry Yang has made his first move as chief executive of Yahoo, buying the college sports website Rivals.com for an undisclosed sum.

The online auctioneer is aiming to curb Google's power

eBay Inc., the world's largest online auctioneer, has had talks with both Yahoo Inc. and Microsoft Corp. to determine whether one of them might be a suitable ally over plans for a "mega-merger" aimed at thwarting the ever-increasing dominance of Google.

The talks, which are certain to face US regulatory scrutiny, are thought to focus on eBay pushing a greater proportion of its $US400 million ($US536 million) global online marketing expenditure towards either Microsoft or Yahoo. Ultimately, one side could take an equity stake in the other.