Questions
As you can see, Yahoo buys IndexTools.

Question now is, where is the war with Google going to go?
How does it affect Yahoo’s price, does it?
How will it affect users?

From IndexTools About Page:
IndexTools is a privately held, self-funded company that closed 2006 as the fourth consecutive year exceeding 100% growth. The company’s success is based, in part, on its 98% customer retention rate - among the highest in the industry.
IndexTools' competitors include Webtrends, Omniture and Coremetrics.

Dennis R. Mortensen, COO IndexTools
In his blog, Dennis R. Mortensen (the COO of IndexTools) writes:
"I am personally VERY excited about our next steps and have positively agreed to stay onboard as the Director of Data Insights at Yahoo! – so there is no escaping me. My new function will very much be around driving and evangelizing the Analytics strategy for Y!, so envision a more commercial version of Avinash or a less British version of Ian or the nemesis of Omniture if you will… ha ha".

Read Yahoo’s statement
Read Techcrunch

Yahoo to buy indextools