A possible deal between Microsoft and Yahoo might still be in the works, according to the London Times. Under the terms of the deal, Microsoft would take control of Yahoo’s search service for a period of ten years. While Yahoo Search would be under Microsoft control, it would remain a distinct, separate entity from Live Search. The deal would also give Microsoft three seats on Yahoo’s board of directors, as well as a “two year window” to purchase the search engine outright for $20 billion. It must be distinctly understood, however, that the deal only involves the actual Yahoo search engine. All of the other services currently offered by the company, such as Yahoo Mail and Yahoo News, will remain under Yahoo control. Neither Microsoft nor Yahoo have chosen to comment at this time.

As enticing as the story is on the surface, many within the industry are having a hard time believing that it’s true. Kara Swisher of All Things Digital says that a source close to both companies claims the rumors are “total fiction.” Writes Swisher: “I have spoken to top sources at Yahoo and Microsoft too and all scoff at such a deal now taking place or that either side has been in any such discussions of late.” While she doesn’t necessarily rule out the possibility of this deal happening some time in the future, the “present” looks very much in doubt.

In other, non-Yahoo news,  Amazon has gone forward with plans to shut down Alexa. For those unaware, Alexa was a tool designed to track the web usage of users, similar to Google Analytics. The software was more famous — or infamous, if you prefer — for the spyware warning that followed its toolbar throughout its life. According to the folks at Amazon, Alexa was shut down due to a combination of low usage and stiff competition from the likes of Yahoo, Google, and Microsoft. Although Alexa stopped accepting new customers November 26th, Amazon plans to keep the service running until January 26th.

Elsewhere, it seems as if the advertising found on social networking sites might not be as popular (or profitable) as once thought. According to a new poll conducted by researcher IDC, only 57% of those surveyed said they have clicked on at least one social network-based ad in the past year, with only 11% actually buying anything. By comparison, the click rate/purchase dynamic on traditional websites stand at 79% and 27%, respectively. “The thinking has been that the popularity of social networking services will attract a big audience and generate a lot of traffic, which in turn will produce enormous amounts of user-generated content and therefore advertising inventory,” IDC’s Karsten Weide told WebProNews. “All of the above has proven true — except that almost invariably, [social services] have had a hard time selling this inventory.”

Finally, we have Ziipa. Ziipa is an interesting social media site that allows users to find, post, and talk about all of the best web 2.0 tools and apps the Internet has to offer. Despite being rather new — the root company was only created last May — the service is already getting favorable reviews from a few well-known sites. “Ziipa will interest virtually anyone who’s tired of the same old, same old,” writes Mashable’s Paul Glazowski. Equal parts Google, StumbleUpon, and the “award winning pies” table at the county fair, Ziipa is perfect for anyone who is in the mood for something a bit “different,” yet still mind numbingly advanced.