Looks like Microsoft is panicking about Google’s performance these days. Bill Gates’ company is seriously pursuing acquisition of Yahoo!

On the bright side, even if a deal comes together, the two conglomerates can’t divide the cyberworld as an oligopoly. Fortunately, there’s a long tail of niches being filled by the rest of us online.

It also raises the issue of what Microsoft will do in the video arena. It has already been trounced in the audio arena by Apple’s iPod (Zune just doesn’t compete). GooTube, that is Google Video and YouTube, seem to dominate the online video market.

Hat tip to PETER LAURIA and ZACHERY KOUWE at the NY Post.