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For the past two years, the logic behind a Nokia-Yahoo alliance has been strengthening. Both need to fend off Google; both are underestimated in the key mobile web arena; they have important, but contrasting, gaps in their platforms. When Yahoo was locked in an acquisition stand-off with Microsoft two years ago, we argued that Nokia would be a strong white knight, though its cultural aversion to major acquisitions dashed such hopes - plus a hefty dose of Finnish pride in being able to effect its web services transformation unaided. Two years on, the two companies are certainly getting closer, though actual merger looks as unlikely as ever. They joined forces this week on a deal that brings Nokia's storming maps platform to the rescue of Yahoo's faltering mobile location strategy, and in return enables Nokia to leverage the US firm's US brand presence and mail engine. A glaring omission, though, is any deal on mobile advertising, where both companies risk being outmanoeuvred by Google's AdMob purchase and even Apple's iAd.

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