It’s rare that Yahoo can boast a victory these days, with disappointing growth prospects for 2008 and a slew of job cuts on the way. But it scored a triumph in Barcelona, where carrier T-Mobile signed on to use Yahoo’s Web services for cell phones, displacing search market leader Google.

The deal covers T-Mobile subscribers in northern and central Europe and was announced at the Mobile World Congress. But the timing could not be better for Yahoo, which is trying to stand its ground in the face of a $42 billion takeover bid by Microsoft Corp.

It’s no secret that Yahoo’s mobile capabilities are well-regarded, nor is it hard to imagine that its easier to use search functions for cell phones is one of the reasons the company is such a tantalizing grab for Microsoft. Is a T-Mobile deal enough to add a couple of bucks to Microsoft’s original $31 per share offer? (Reuters)

As a footnote, Microsoft isn’t exactly treading water either. It just bought mobile software company Danger. (Reuters)

Keep an eye on:

• Beyond disrupting the TV schedule, the Hollywood writers strike shone a spotlight on broad issues facing the industry: how commercial time is bought and sold is badly outdated; show development is too costly; and, most troubling, audiences are shrinking. (Reuters)
• The end of the strike leaves many questions about the status of broadcast and cable shows. (TV Decoder)
• Layoff are expected to begin today at Yahoo. (PaidContent)
• Best Buy and Netflix back the Blu-ray next generation DVD technology. (Reuters)

(Photo: Reuters)