London - Microsoft (NASD: MSFT) has launched Messenger TV, a new video feature for its instant messenger application currently available in 20 European countries. Users can send one another up to four-minute-long video clips from providers including Reuters, Channel 4 and EMI and chat while watching the videos.

Los Angeles - Microsoft's (NASD: MSFT) Zune digital media player gained a bit of the MP3 player market share in NPD Group's latest rankings, now accounting for 4% of the total market, up from 3% in the first quarter of 2007, Wired.com reported.

Los Angeles - Microsoft (NASD: MSFT) recently doled out one-time bonus checks to independent digital music distributors including The Orchard (NASD: ORCD) and IODA, apparently to balance out the reported $1 per Zune sold it has granted to major labels including Universal Music Group, Hypebot reported. Both distributors plan to share the revenue with their label and artist partners.

Seoul, South Korea - Microsoft (NASD: MSFT) announced on Tuesday that it has signed a long-term agreement with Hyundai-Kia Automotive Group to co-develop the next generation of in-car infotainment systems. The first product based on the Microsoft Auto software platform, which will provide voice-controlled connectivity between mobile devices, is scheduled for release in North America in 2010.

Redmond, Wash. - Microsoft (NASD: MSFT) announced on Tuesday that it has added more than 800 downloadable TV show episodes from NBC Universal (NYSE: GE), Viacom (NYSE: VIA), Time Warner (NYSE: TWX), Liberty Media (NASD: LINTA) and other providers to the online store for its Zune portable media player. Notable in the deal is NBC Universal's inclusion, as the company's programs disappeared from Apple's iTunes Store in December following disputes over pricing and bundling. "Partnering with Zune will allow us to develop innovative content offerings for their customers, including flexible pricing and packaging options beginning this fall," said JB Perrette, president of NBC Universal Digital Distribution.

New York - AOL (NYSE: TWX) could emerge as the big winner of this weekend's failed mega-deal between Microsoft (NASD: MSFT) and Yahoo (NASD: YHOO), with both companies potentially seeking to acquire the Time Warner unit in their efforts to better compete with Internet ad leader Google, The Wall Street Journal reported. "Both companies may turn their attention to the struggling Internet business, providing Time Warner Chief Executive Jeff Bewkes with a possible exit strategy," The Journal reported.

Redmond, Wash. - Shares of Yahoo (NASD: YHOO) fell 15% by late Monday, two days after Microsoft (NASD: MSFT) withdrew its $47.5 billion takeover bid for the company. A deal, which had been more than three months in the making, appeared to be close to fruition last week, when Microsoft agreed to raise its offer by $4 a share -- roughly $5 billion -- to $33 a share. According to Microsoft CEO Steve Ballmer, however, Yahoo CEO Jerry Yang rejected the deal, insisting the offer be raised to at least $37 a share.

Sunnyvale, Calif. - Hoping to avoid a messy proxy battle, Microsoft has increased its bid for Sunnyvale-based Yahoo by "several dollars," The New York Times reported on its web site late Friday. Specific financial terms being discussed have not been disclosed, though Microsoft reportedly has raised the possibility of increasing its current $29.30-per-share offer to as much as $33.

Washington - The Justice Department is investigating whether an advertising tie-up between Yahoo (NASD: YHOO) and Google (NASD: GOOG) violates antitrust laws, Reuters reported. Under a two-week test, scheduled to end this week, Yahoo is using Google's online ad system to provide relevant ads alongside its search results.

Redmond, Wash. - As a result of Microsoft shuttering its MSN Music store in favor of its Zune Marketplace, the company has told MSN Music customers that the licenses for the songs they purchased can be updated for the last time up until Aug. 31 -- after which time the songs cannot ever again be transferred from the devices on which they are currently stored, according to reports.

London - Google (NASD: GOOG) once again claimed the top spot in market research firm Millward Brown's annual list of the top 100 most powerful brands, beating out other leading brands like GE/NBC Universal (NYSE: GE), Apple (NASD: AAPL) and Microsoft (NASD: MSFT) for the honor for the third year in a row. The report estimated Google's value at $86 billion, up 30% on a year ago; second-place General Electric's brand value was estimated at $71.4 billion.

Port Washington, N.Y. - Bypassing the current troubles in the overall economy, U.S. video game sales hit $1.7 billion in March, up 57% from a year ago on strong sales of Nintendo's Wii and "Super Smash Bros. Brawl," according to industry sales data compiled by market research firm NPD Group. "You'd never know that the U.S. economy was under distress by looking at the video games industry sales figures," said NPD analyst Anita Frazier.

Chicago - Microsoft has partnered with Genius Entertainment to offer a limited edition Zune digital media player that will feature classic artwork from legendary U.K. band Joy Division's album "Unknown Pleasures," Pitchfork reported. The occasion for the promotion is the June 10 DVD release of "Control," a documentary about the band by Grant Gee to be released by Genius Entertainment.

Sunnyvale, Calif. - Following what is said to have been a successful week-long test, Yahoo (NASD: YHOO) is now seeking to partner with Google (NASD: GOOG) to provide ads alongside its search results, the Wall Street Journal reported. The tie-up with Google would be a key element to a prospective deal where Time Warner (NYSE: TWX) would merge with Yahoo, and take a stake in the company, according to Reuters.

New York - A rare club performance by Madonna scheduled for April 30 at the Roseland Ballroom in New York will be webcast live by Microsoft's (NASD: MSFT) MSN Music to U.S. users, and to the rest of the world on May 15, Billboard reports. The artist's Icon fan club has also added social networking components, including a $40 platinum membership that offers exclusive concert pre-sales and other goodies.