The BBC reported on Saturday that demands are being made for careful government scrutiny of any potential alliances between Internet giants Yahoo Inc. (NASDAQ: YHOO) and Google Inc. (NASDAQ: GOOG).

According to the BBC report, a coalition of activist groups including the Black Leadership Forum, the League of Rural Voters, the National Black Chamber of Commerce, and the American Agriculture Movement, is concerned that allowing any kind of unregulated working relationship between Yahoo and Google could put Internet neutrality in serious jeopardy. Gary Flowers, representing the Black Leadership Forum, is quoted by BBC as stating, "We all suffer in such mega mergers." He further stated that the nature of such a partnership could "condense competition, increase prices and limit new business opportunity on the Internet."

The BBC indicates that the Justice Department is already in the process of reviewing joint operation trials that the two companies have engaged in. However, the department seems to be down playing the citizen coalition's demands, citing that the two companies have no working agreements to address. At a recently held Google shareholders meeting the matter was addressed by Chairman Eric Schmidt who stated, "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the antitrust concerns that have been widely discussed."

I would tend to echo the valid concerns of Gary Flowers: too much control over Internet communications by any one particular entity or alliance would inevitably be bad for all of us. I think the matter needs to be taken to a broader base of examination than the justice department alone can provide.

Clearwire (NASDAQ: CLWR), the small but ambitious wireless broadband internet provider, is teaming up with Google (NASDAQ: GOOG) to distribute the internet search leader's web-based applications with its internet service.

Clearwire at one time was a takeover target rumor in the market. And who was the rumored acquirer? Google, of course. It's no secret that Google has grand ambitions in the wireless internet space, although reality is far from its ambitions at the moment, with its limited network in Mountain View, California, where it is headquartered.

Google is also expected to bid heavily in the upcoming FCC auctions later this month in what could be seen as an effort to construct a nationwide wireless data network for whatever purpose suits it. For right now, though, it may be content getting its Gmail and Google Calendar in front of more customers with the Clearwire distribution partnership.

Clearwire indicated that both companies share the same mission by saying, "Both companies are built on the foundation of providing a simple to use, rich and open Internet experience, and we believe the addition of these communications tools will be a tremendous benefit to Clearwire's customers."

MAJOR PAPERS:

• Carl Icahn has predicted that the private equity market has peaked at the Wall Street Journal's Deal and Deal Makers Conference, reported the Wall Street Journal.
• Imperial Tobacco Group plc (NYSE: ITY) and CVC Capital Partners, a private equity firm, are both looking at Altadis, the leading maker of cigarettes in Spain and France, with a final price of over $17B expected, reported the Wall Street Journal.

OTHER PAPERS:

• Ford Motor Company (NYSE: F) is set to launch a new national incentive program today featuring no-interest financing for 36 months on all 2007 Ford, Lincoln and Mercury vehicles, signalling pressure for the company to sell vehicles, reported the Detroit Free Press.
• Bear Stearns Companies Inc (NYSE: BSC) has appointed Tom Marano, a leading executive and highly regarded mortgage-bond trader, to oversee the bailout of its hedge fund collapse, reported the New York Post.
• Bharti and Wal-Mart Stores Inc (NYSE: WMT) appear to be close to finally sealing a partnership, reported the Economic Times.

Well, it has gone and done it now. Microsoft Corp. (NASDAQ: MSFT) has apparently initiated talks with Yahoo! Inc. (NASDAQ: YHOO) again. All I can say is, HAVE IT NO PRIDE???

After Yahoo!'s management shrugged it off the last time it made an offer, Microsoft management should have undertaken an entirely different strategy which should have involved ramping up its own Internet advertising showboat and pinning Yahoo against the wall until it cried uncle and begged for just anyone to acquire it. Instead, MSFT went home, licked its wounds and now came back whining, "Please oh please, won't you marry me?" What kind of limp-wristed business strategy is that?!

The whole thing seems to be sired by Microsoft's bushel of sour grapes in regard to losing the DoubleClick bidding war to Google Inc. (NASDAQ: GOOG). My interpretation of Microsoft's subliminal message here is that it couldn't win the game so it's going to pay the crippled kid down the street to come play with it. The only problem here is that the crippled kid isn't all too interested in playing, and Microsoft doesn't even seem to realize that it's a cripple.

Wisconsin-based Johnson Controls (NYSE:JCI) is boasting advances in lithium ion battery technology that is enabling automakers worldwide to successfully create and sustain the new breed of high-efficiency automobiles. Remember, these new hybrids and plug-ins are useless without adequate and dependable, long-life power sources to support them. Since January 2006, Johnson Controls has sought to make lithium ion batteries the chosen power pack for future energy efficient vehicles. I'm pleased to report that they have met with admirable success.

Earlier this month, Johnson Controls accepted a development contract with General Motors to develop and test lithium ion batteries for use in GM's Saturn Vue plug-in hybrid SUV. Concentrated development efforts begun in January 2006 by Johnson Controls-Saft Advanced Power Systems (JCS) have come to the point where JCS was able to install and display a fully integrated lithium ion battery system in a prototype hybrid-electric SUV at the 2007 North American International Auto Show.

Alan Mumby, president and general manager of Johnson Controls hybrid battery business, states: "We are thrilled to be a key player in enabling tomorrow's green technologies". The JCS lithium ion battery laboratory, situated in Milwaukee, Wisconsin, is the only dedicated facility in the world focused exclusively on developing lithium ion technology for use in hybrid vehicles.

At least partial funding of the JCS lithium ion battery development project has been provided by the U.S. Department of Energy in furtherance of the Freedom CAR and Fuel Partnership project. The United States Council for Automotive Research (USCAR) is also a driving force in this effort. USCAR is a development and research effort operating with the combined forces of Americas big three automakers. This all speaks well of our friends in American auto manufacturing. Breathe easy America, they're working on it.

The anti-General Electric Company (NYSE:GE) camp must be quaking in their shoes. The perennial giant is set to comfortably leap above $40 per share...again. There are those of us who have seen this coming for quite some time. If you bought into GE a couple of months ago, this should come as a pleasant entry into the new year.

Several subtle moves by GE have spurred this new and invigorated growth, the most recent of which is the refinancing of Indiana-based Hacienda Restaurants by GE Capital Solutions, Franchise Finance division. The $7.6 million deal allowed Hacienda to buy finance warrants that were still outstanding from investors. This move places 100% control of the restaurant chain directly into the hands of its owners.

General Electric and Hitachi Ltd. (NYSE: HIT) have signed a letter of intent to enter into partnership in the development and resourcing of nuclear energy assets. This is a continuation of GE's push into energy conservation and non-petroleum based energy solutions. The two companies expect to exchange percentage ownership in their respective nuclear energy divisions in order to more efficiently exploit each of their existing nuclear programs. You can get a good look at Hitachi with this link.

A new breed of natural gas fired electric turbine is being installed in Romoland,California by General Electric to produce energy which will be marketed by Calpine Energy Services. This new generation turbine will generate energy to serve the needs of more than half a million homes. General Electric will own the Inland Empire Energy Center facility, while Calpine will manage the facility operations and market the output. The cooperative agreement between GE and Calpine calls for eventual ownership of the facility to be taken over by Calpine Energy Services.

If you're still not sure that GE is leading the pack, I suggest a tour of the General Electric website. It does a nice job of keeping investors up to date. I hope you'll get a feel for just how forward moving and well run a company it is. Watch the stock tickers, see the investors swoon. You just can't write these folks off the page.

Basketball-great-turned-entrepreneur Ervin "Magic" Johnson has been breaking ground -- bringing names like TGIF, Loews, and WAMU to under-served urban neighborhoods and proving that quality products translate into company profits, for years now. His management firm, Johnson Development Corp, and Starbucks (SBUX) have a longstanding partnership.

"Minorities want brands, just like suburban America wants," Johnson says in a new interview with the Charlotte Observer. Johnson's been more successful in the retail arena than 'bucks chairman Howard Schultz's at basketball, but their relationship together has been an innovative one. However, starting this second career was not easy for Johnson.

Objections faced when he first set out to raise money for urban development ranged from the reasonable (he had no track record) to the staggeringly unimaginative. Here's the interview's money quote:

"'Well, if this is going to be so great, why hasn't someone else done it?'" So I had a hard time, even though I was Magic Johnson, raising money, because nobody believes in urban America."

Almost nobody.

Appleberry? Black Apple? "It sounds delicious," says Molly Wood. Veronica Belmont and the aforementioned Wood, in their Buzz Out Loud podcast from yesterday, talk about the latest analyst rumor du jour. Peter Misek has predicted that RIM and Apple will work together to create a cell phone that combines PDA, email, phone, and video iPod.

"All business in the front, and all party in the back?" Molly asks. "Mulletberry is the best word for it," says Veronica. Now that's not delicious. And either way, Apple stock road the market malaise today, down 27.7 cents to $59.72.

The general consensus on yesterday's announced partnership between Google and Dell to pre-load Google's search toolbar and homepage on Dell PCs seems to be: Google + , Microsoft - and Dell ~. According to Moors & Cabot research VP Cindy Shaw, as quoted in the New York Times, "It's a slight positive for Dell ... But it will not solve Dell's larger issues. It's not going to be what gets people to buy a Dell."

Dell's bigger issues include a major decline in profit, and no one seems to think this partnership will result in huge additional revenues for the nation's biggest PC manufacturer. Good Morning Silicon Valley puts most of the analysis in their headline regarding the deal, wondering, "How soon can we get these Google apps added to the Dell De-crapifier?", and mentioning that it's a net positive for Google in the search wars: "It's a turnkey solution for Google as well, at least when it comes to wresting control of PC users' default settings away from Microsoft." Meanwhile, Garett Rogers at Googling Google "didn't realize this was news" and hopes for Google software on every Dell sold and -- no, that's not all -- wants even more deals in the future.

For Amit Agarwal, it's not the smiley happy party it seems to be for the Google fans 'round the net. He warns glumly in a tantalizing headline that the deal is "Dangerous for Desktop Search Industry." He worries that default-setting-not-changing users will "miss the innovations from other desktop search companies" and wonders how long it is until Microsoft runs to the DOJ, as Google just did in anger over Vista's default-happy browser. Steve Bryant from Infoweek seems to agree with the general negative feelings towards Google, calling the company an "infovore."

It seems only yesterday when Microsoft's position atop the lucrative desktop software market was so unassailable that the FTC had to bust them for monopolistic behavior. Oh wait: it was yesterday. That's why news of Dell and Google agreeing to install Google software on Dell PCs met with a round of gasps heard from Wall Street to Fleet Street.

It's been 10 years since Microsoft first began making deals to pre-install its software on home computers, and the bet was a good one, prompting Microsoft to a seemingly insurmountable lead in the desktop software market. But now Google software will sit in Microsoft's place.

The impact on Microsoft could be stunning. While sales from the "Client" division only make up about 29% of Microsoft's sales as of the most recent quarter's results, those sales represent 63% of the company's operating income. Were the client sales to be impacted only by 10% as a result of this Dell/Google deal, or about 3% of the overall revenue, 7% or more of the operating income would be erased: a serious threat indeed. Fortunes are made or lost on high-single-digit drops in operating income.

All we've been hearing lately about Microsoft relates to wars - Internet wars with Google and Yahoo, hardware/operating system war with Apple, and a legal war with the European Commission.  Bet you'd like to see Microsoft learn to play nice and maybe work with competitors rather than constantly be spending money on a battle.

Well, Microsoft is getting its feet wet with how to play nice - - releasing its first joint venture product with SAP.  The project started as "Menocino," with the goal of developing software that would give customers the ability to access SAP through Microsoft Office.  The two companies are jointly releasing a new product called "Duet."  You can find out more about Duet at an informational website launched jointly.

Not only have they worked together to develop the new software, they're going to market and support it jointly starting with customer briefing events next month.  The product will be released in June, if it stays on schedule.  Some customers have been testing the software since December and about 100 more will join the test this week, according to Shai Agassi, president of SAP's product and technology group.

The big question is how will this affect Microsoft Dynamics, which competes with SAP?