mocoNews asks, "What could a tie-up of Microsoft (NSDQ: MSFT) and Yahoo (NSDQ: YHOO) achieve in the mobile space?" Let's look at the press release:

Emerging user experiences:  Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

As mocoNews notes, "Both have been busy the past year building out their mobile services and strategies." You can be sure that when considering this potential acquisition Microsoft isn't merely looking at search advertising (the past, and the present); they are also looking at mobile (the future). As Google CEO noted yesterday, the iPhone is just the "first of a whole generation of products" that will exploit search technology. "With those search opportunities comes ad monetization," said Schmidt.