• Sony bought video site Grouper (pictured) for $65 million; analysts say it's for the technology, not for the traffic. [NYT]
• Microsoft wins the ad provider contract for Facebook, which one Times source calls a "consolation prize" for losing the MySpace contract. We prefer to call it "prom date plan B." [NYT]
• One day later, the cold reality of YouTube's announcement (that its brave new business plan begins with Paris Hilton) finally sinks in, and we finally acknowledge it. [Mercury News]
• In an agreement in U.S. District Court, the government drops all charges against Frank Quattrone, an investment banker who blew up the tech bubble in the 90s. He may be "not guilty" under the law, but in the hearts of those who spent millions based on his foolhardy predictions, he will always be "that bastard Quattrone." [WSJ]

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