Microsoft filed an application with the Court of First Instance in Luxembourg, seeking to annul the Commission's decision from late February, in which it imposed a fine of 899 million Euros, or $1.39 billion, against Microsoft.

"We are filing this appeal in a constructive effort to seek clarity from the court. We will not be saying anything further," Microsoft said in a statement.

Given our commitment to advance notice, we wanted to use this blog as one of many avenues to alert our customers to the fact that we will be distributing SP1 automatically via Automatic Update beginning June 16th. The availability will happen gradually and not everyone will see it at the same time. Think of the 16th as the earliest possible start of distribution and that no sooner than that date will SP1 start to become available to customers' systems via this channel. This is necessary to ensure that our service infrastructure can meet the enormous demand for the service pack.

Asked if Yahoo would still leave a door open for Microsoft to return, [Yahoo! CEO Jerry] Yang said: "If they have anything new to say, we would be open. ... I am more than willing to listen."

But its two largest shareholders independently told The New York Times they would have sold for as little as $34.

"I am extremely angry at Jerry Yang and at the so-called independent board," Gordon Crawford, portfolio manager for Capital Research Global Investors, the largest Yahoo shareholder with some 16 percent of stock, told the newspaper.

Today, Microsoft Corp. and Hyundai-Kia Automotive Group (HKAG) entered into a long-term agreement to co-develop the next generation of in-car infotainment systems. Bill Gates, chairman of Microsoft, and Mongku Chung, chairman of HKAG, were present as Martin Thall, general manager of Microsoft’s Automotive Business Unit, and Hyun Soon Lee, president and chief technology officer of HKAG, signed the agreement in Seoul.

Together, Microsoft and HKAG will deliver new and innovative solutions based on the Microsoft Auto software platform, bringing the future of in-car technology to Hyundai-Kia drivers worldwide.

“These new systems will redefine consumer experiences in the car,” Thall said. “Since the spring of 2006, HKAG and Microsoft have been sharing their vision for the future of in-car technology. We’re now aligned to develop the next generation of in-car infotainment systems.”

“We are pleased to partner with Microsoft to deliver high-performance infotainment solutions to our customers,” Lee said. “The advanced capabilities, flexibility and low price point make the Microsoft Auto software platform an attractive solution for us.”

The first product, a next-generation infotainment system that provides voice-controlled connectivity between mobile devices, will be introduced in the North American market in 2010. It will further apply to Asian and European markets, and expand into multimedia and navigation devices. These easy-to-use infotainment systems will allow consumers to enjoy music in various digital formats.

The next-generation infotainment systems are comparable to mini-PCs. Even after product launch, new functions can be added or upgraded in the form of software program updates, an innovation to existing in-car multimedia technology.

The Hyundai-Kia Automotive Group’s adoption of the Microsoft Auto software platform increases Microsoft’s presence in the Asian car market and enhances the global automotive business. The engineering and marketing teams of Microsoft’s Automotive Business Unit in Redmond, Wash., will be working directly with counterparts at HKAG in Seoul to support this goal. Microsoft Auto-powered systems are currently available in Fiat Auto Group vehicles in Europe and South America and Ford Motor Co. vehicles in North America.

In a related announcement, Microsoft and Hyundai-Kia, along with the Institute for Information Technology Advancement (IITA), signed a memorandum of understanding (MOU) to co-establish an automotive IT innovation center with the goal of promoting innovation and opportunities for Korean software and device vendors in the global market.

Microsoft Corp. today announced that Zune, the company’s all-in-one digital entertainment brand, is adding new software features and content to the Zune online store, music community and Zune Pass monthly subscription service. Zune is expanding its video store to include downloads of popular television shows from COMEDY CENTRAL, FUNimation® Entertainment, MTV, NBC Universal, Nickelodeon, Starz Media (including Manga Entertainment), Turner Broadcasting, Ultimate Fighting Championship® (UFC) and VH1 that consumers can sync to their device and enjoy on the go. In addition, by further integrating the Zune music community into the core experience, the new software makes it easier for people to find and listen to the music they want, share it with friends, and take it with them wherever they go — whether they choose a Zune Pass or a la carte MP3 downloads. Zune Pass subscribers can now set up automatic, real-time feeds of the music their friends are listening to and add those songs to their collection or Zune device.

Starting today, consumers can choose from more than 800 episodes of popular television series to download and watch on their computer or their Zune, including COMEDY CENTRAL’s “South Park,” FUNimation’s “Afro Samurai” and “Witchblade,” MTV’s “The Hills,” NBC’s “The Office,” “Heroes” and “30 Rock,” Nickelodeon’s “SpongeBob SquarePants,” SCI FI Channel’s “Battlestar Galactica” and “Eureka,” Starz’s “Ghost in the Shell” and “Street Fighter,” Turner Broadcasting’s “Metalocalypse” and “Robot Chicken,” UFC’s “The Ultimate Fighter®” and “Fight Night™,” and VH1’s “Rock of Love” with Bret Michaels. Each television show will be priced at 160 Microsoft Points per episode (approximately $1.99) at launch. With more than 3.5 million tracks, two-thirds of which are available in pure MP3 format, 800 television shows, 4,800 music videos and 3,500 audio and video podcasts, the Zune online store is a great place for consumers to find the entertainment content they want. In addition, the bright, full-color screen on every Zune portable media player delivers a high-quality video experience on the go.

A source close to Microsoft says on Saturday, May 3, both Yahoo Co-Founders Jerry Yang and David Filo flew to Seattle to meet with Steve Ballmer and Kevin Johnson personally. They were there to deliver a message: that Yahoo's board was willing to come down to $37, but that Yang's and Filo's price was still at $38.

Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars,” this person said. The merger talks represent an enormous breakthrough following weeks of behind-the-scenes discussions without any progress. Exact terms being discussed could not be learned.

Microsoft Corp. today delivered on its commitment to rapid innovation for the newest Microsoft platforms and latest Web technologies by announcing the release of Expression Studio 2.

The suite of professional design tools includes Expression Web 2, Expression Blend 2, Expression Design 2, Expression Media 2 and Expression Encoder 2 and works seamlessly with Visual Studio 2005 and Visual Studio 2008, solving the age-old designer and developer workflow challenge. The innovations in Extensible Application Markup Language (XAML), used by both Expression Studio and Visual Studio, allow for unprecedented designer-developer collaboration for the creation of both standards-based and Microsoft Silverlight-enhanced Web experiences as well as Windows Vista and .NET Framework 3.5 client applications.

Geotagging with Virtual Earth: Take advantage of geotagged images with Virtual Earth integration.
View more high-res screen shots.

In line with the team’s commitment to short release cycles, Expression Studio 2 is coming to market one year after the last release with major updates to each product. The products together contain more than 100 new features and introduce new Microsoft Silverlight functionality for creating stunning cross-browser, cross-platform Web experiences. Key features include the following:

• Expression Web 2 adds support for PHP and Adobe Photoshop import based on customer feedback.

• Expression Blend 2, in addition to Silverlight support, adds vertex animation and an improved user interface with a new split design/XAML view.

• Expression Design 2 adds improved exporting functionality including the ability to export slices.

• Expression Media 2 is a robust digital asset management solution for photographers and other creative professionals. It adds support for the latest file formats including RAW, provides geotagging functionality, and is supported by Microsoft Office 2007 and Microsoft Office for Mac 2008.

• Expression Encoder 2 is now a core offering of the suite. It allows creative and Web professionals to optimize almost any type of video content quickly for publishing on the Web, either in streaming video, rich-media advertising or other Web 2.0 projects.

This groundbreaking release brings creative professionals fully into the application development process, accelerating time to market, minimizing resource use and improving return on investment for new projects. A full overview of features is available at http://www.microsoft.com/expression/features.