Yahoo under Carol Bartz is definitely moving in the right direction. First the new and redesigned homepage and now the search deal with Microsoft.
I think the new Yahoo homepage (http://m.www.yahoo.com) is a lot better with the "My Favs" section that allows you to preview your favorites sites with a mouse-over and has a "Popular Searches" section. You can add any site you want I also like the uncluttered layout and "compact" view. One of the big improvements over iGoogle is that you add any site or email or social network or news feed (I added my blog) to the My Favs section thus making it totally personalized. Yes, there are some bugs in some of the widgets, but I think Yahoo will fix them eventually.
Considering that yahoo.com is the most trafficked site in the world, I think the new design is a big step forward. It will take more than a new layout or a search deal with Microsoft for Yahoo to pose as a real threat to Google. But hey, at least Yahoo is finally moving in the right direction.
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