We've been waiting all week for the other shoe on Microsoft's hostile takeover attempt to drop on Yahoo, which isn't waiting for that to happen and has forged an advertising agreement with Google as a way to hedge against the ongoing acquisition dispute. In other news -- and, yes, there was some other news -- Apple updated iMac with a speedier processor and more graphics choices, while Adobe announced a community development project that should lead to a consistent application interface across all devices that use Flash and Adobe Integrated Runtime. Of course, there was also security news, too.

1. Report: Microsoft close to hostile bid for Yahoo: This one could change after U.S. financial markets close Friday afternoon, but word is that Microsoft is getting ready to make a hostile takeover attempt on Yahoo, according to The Wall Street Journal. That was reported early Friday. By late afternoon, the Journal was reporting that talks between Microsoft and Yahoo had intensified in a "last-ditch" effort to arrive at an amicable deal. But the report also quoted sources familiar with what's going on saying that a deal isn't imminent. Microsoft CEO Steve Ballmer is said to have told employees that he'll "go to what I think it's worth if that gets a deal done." But he also told the Journal that "with the right circumstances, it'll happen. Without the right circumstances, it won't happen." OK, then. That clears everything up ...

2. Report: Yahoo could run Google ads next week: Not to be undone (just yet) by word that Microsoft is going to ratchet up its acquisition fight, Yahoo is said to be in an agreement that will have it running Google ads within a week. The deal would improve Yahoo's cash flow, possibly bringing in up to US$1 billion yearly because of a revenue-sharing aspect of the deal, according to a Citigroup analyst.

3. Adobe establishes Open Screen Project for Flash, AIR: Adobe launched the Open Screen Project that is meant to bring together digital content and service providers, device makers and developers so that a consistent application interface will be created for all devices using Flash and Adobe Integrated Runtime. "If you look at the current experience, content doesn't work reliably, you can't easily install applications, you can't get applications on a device," said Abobe Chief Technology Officer Kevin Lynch. The project aims to fix that.

4. XP change corrupts data; hamstrings SP3 rollout and Microsoft backpedals on Windows updates: Microsoft put off releasing the Windows XP Service Pack 3 because operating system changes can lead to data corruption in Microsoft's point-of-sale and store management software. Automatic distribution of Vista SP1 was also halted. Users can get SP1 manually from Windows Update and while there is not such an option for XP SP3, some savvy users have found a stand-alone installer on Microsoft servers. Microsoft wouldn't confirm (or deny for that matter) that the links provided on the Internet by those users will take you to company-approved files.