Microsoft, Yahoo to link instant message services

"Microsoft Corp. and Yahoo Inc. are preparing to link together their free instant messaging services as they take on entrenched messaging leader AOL and market newcomer Google Inc., a source close to the companies said on Tuesday. The deal, the first major alliance between two of the Web's main providers of instant messaging, will allow users of Microsoft's MSN Messenger service and Yahoo Messenger to swap instantaneous text messages with each other."

[Reuters]

No doubt this will be a fun battle to watch.