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9:40 PM ET, May 3, 2008


 Top Items: 
Ina Fried / Beyond Binary:
Microsoft pulls its Yahoo offer  —  Update 2 p.m. PDT: Microsoft has made its move official.  Click here for the story and here for the text of a letter Ballmer sent to Yang.  —  Microsoft is withdrawing its offer for Yahoo after talks between the two companies broke down on Saturday, a source told CNET on Saturday.
Microsoft Withdraws Proposal to Acquire Yahoo!  —  Microsoft Corp. today announced that it has withdrawn its proposal to acquire Yahoo! Inc.  —  Microsoft Corp. (NASDAQ: MSFT) today announced that it has withdrawn its proposal to acquire Yahoo! Inc. (NASDAQ: YHOO).
Kara Swisher / BoomTown:
BREAKING: MICROSOFT WALKS  —  After a months-long standoff, Microsoft (MSFT) has abandoned its bid for Yahoo (YHOO), people involved in the discussions today.  —  Microsoft confirmed to BoomTown that talks between the two companies, which have been taking place all week, collapsed Saturday when they could not agree on a price.
New York Times:
Microsoft Withdraws Its Bid for Yahoo  —  Microsoft said Saturday that it was abandoning its blockbuster bid to acquire Yahoo after the two companies could not agree on a price.  —  The breakdown in the talks followed a meeting on Saturday morning in Seattle between Microsoft's chief executive …
Discussion: Slashdot
Paul Kedrosky's Infectious Greed:
Analysis of the Microsoft Decision, Plus Yahoo's Hari-Kari  —  Here is my first cut analysis of what has happened here:  — On the friendly front, Yahoo drew a hard line at $37 per share, well above the $33 that Microsoft now says it told Yahoo this week it was willing to go
Ina Fried / Beyond Binary:
Microsoft says proxy battle not worth it
Discussion: BloggingStocks
MG Siegler / VentureBeat:
Yahoo breaks the wrist, Microsoft walks away
Jon Stokes / Ars Technica:
Intel: “Web 2.0"-style cloud computing just a passing vapor  —  Let's say that you're Intel, and you spent $5.5 billion in capital expenditures in 2007, much of it on the 45nm transition, and all of it for the purpose of beating rivals at delivering performance-per-watt increases across a range …
Hollywood Newsroom:
Exclusive: Tom Cruise buys Google Adwords, to launch new web site.  In two days, his official web site is gonna...  ITEM: Tom Cruise is buying Google Adwords.  His Scientology handlers must be working on his SEO optimization; type in “Tom Cruise” in Google Search …
Michael Arrington / TechCrunch:
Urgent Changes Are Needed To Facebook Messaging  —  Facebook email, which they call messages, is becoming completely unusable as a personal or business productivity tool.  When I first joined Facebook it was fine.  I only had a few friends on the service, and people didn't do much with it except to occasionally say hi.
Brad Stone / New York Times:
Friends May Be the Best Guide Through the Noise  —  CATHY BROOKS is a typically unapologetic Silicon Valley Web addict.  Last week alone, she produced more than 40 pithy updates on the text messaging service Twitter, uploaded two dozen videos to various video sharing sites …
Arn / MacRumors:
AT&T Disables Free iPhone Wi-Fi (For Now)  —  On Wednesday, we reported that AT&T had begun offering free Wi-Fi access to iPhone users at many of their national Wi-Fi hotspots, including Starbucks and Barnes & Noble locations.  —  No official announcement had been made, however, and AT&T representatives reportedly declined to comment.
Steven Musil / CNET
Cubans line up to buy their first legal PCs  —  Perhaps the days of looking at Cuba as the island that technology forgot are beginning to wane.  —  Late last month, President Raul Castro's government lifted the ban on ordinary citizens from owning a cell phone and getting cell service …
Discussion: Gizmodo, Engadget and WebGuild
Will Weissert / Associated Press:
Cuba puts first computers on sale to the public
Discussion: CrunchGear
Dan Farber / Outside the Lines:
YouTube disappears from the screen temporarily  —  At 7:00 a.m. PDT I was heading for my video page on YouTube and ran into this message:  —  I was getting to other sites just fine, so it's safe to assume it's a Google problem.  YouTube receives 10 hours of video per minute and is by far the leader in the crowded field.
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Steven Hodson / WinExtra:
What is cloud computing?
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Ben Jones / TorrentFreak:
MPAA Silently Drops Case Against BitTorrent Site
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Antone Gonsalves / InformationWeek:
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Hiptop 3:
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Kara Swisher / BoomTown:
MicroHoo: Hasta La Vista, Hotmail?
Hiptop 3:
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Ryan Block / Engadget Mobile:
The Engadget Mobile Interview: Jonathan Schwartz, CEO of Sun