This is an interesting move by Google but not completely off the rocker for them. Last year they blocked search results from the co.cc domain because they believed they polluted the search results. Google plans to penalize overly optimized sites because they want to level the playing field for other websites who do not concentrate on such efforts. Basically there are sites out there that completely focus their efforts on SEO and not content and those results would rank higher than sites that don't focus on SEO.
Yahoo has announced today that it has replaced CEO Carol Bartz with CFO Tim Morse temporarily until a new CEO is named. Bartz was removed from her leadership role by the board likely because of her rough attitude. She was actually fired over the phone by the Chairman of the Board Roy Bostock.
Google has taken the attack on malware into its own hands today as it blocks the entire co.cc subdomain. The block removed about 11 million results from the Google search index which should dramatically clean up much malware in search results. Read more inside