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What does 2009 have in store for the Internet?

December 30, 2008 |  3:49 pm

Eric Schmidt and Carly FiorinaWhat will happen to the Internet in 2009?

Standard & Poor's Internet analyst Scott Kessler has a few predictions.

He says Microsoft and Yahoo will "bury the hatchet" to better compete against Google. He doubts Microsoft will buy Yahoo but may pursue a joint venture in search, which would boost Yahoo's shares.

On the other hand, Apple and Google might get out the hatchet. Kessler predicts the companies' relationship could grow "uneasy" as the two tech giants increasingly compete on the mobile front (Apple has its iPhone and Google has its Android mobile operating system). Google Chief Executive Eric Schmidt sits on Apple's board. Awkward.

In last year's predictions, Kessler had some hits and misses. He guessed that Google would continue to make inroads in mobile. Correct. He also predicted that Yahoo would have a better 2008 than 2007. He says "we were painfully close in that prediction but resoundingly wrong nonetheless."

"Painful" seems the most technically correct term to sum up Yahoo's 2008.

-- Jessica Guynn

Photo: Google CEO Eric Schmidt on "Meet the Press" with former Hewlett-Packard CEO Carly Fiorina. Credit: Alex Wong / Getty Images