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This article talks about the influence social networks like MySpace and Facebook have had on Google and Yahoo. Yahoo and Google have decided to give up on creating social networks in the U.S.
I think this is a wise idea. Instead, they plan on utilizing Web 2.0, and to gradually introduce ways for their users to interact with one another. As long as they don't try to do too much, I think they will have success. If I can use google for my news, email, and a toned down version of a social network that would be really convenient. Personally, I think MySpace has way to much fluff and garbage I don't need, and facebook is starting to do the same. I think it's fair to say that a lot of people are waiting for a better alternative to what is currently widely used.