Rumor Mill: Are Skype and Yahoo talking?

Are Skype and Yahoo preparing to join forces? There's a rumor going around that the companies are talking to each other about interconnecting their individual IM/VoIP clients. A Skype/Yahoo alliance, or even a Yahoo acquisition of Skype, makes sense. Skype is a major player in VoIP technology while Yahoo is a leader in instant messaging. A partnership would allow each company to leverage the other's strength. The only fly in the ointment is Yahoo's close ties with the Baby Bells, which view Skype as a deadly competitor. Still, with all sorts of mobile devices rapidly incorporating and merging VoIP and IM technologies, Skype and Yahoo must be temped by the opportunity to transform their respective strengths into market dominance.

For more thoughts on Skype and Yahoo:
- check out this entry in Om Malik's broadband blog.

PLUS: Skype turns to retail. Article