LEADING THE DAY: Amazon is reportedly working on a book rental service similar to a Netflix-like service, the Wall Street Journal reported, citing “people familiar with the matter.” The service would have customers pay an annual fee for digital content and would be available to Amazon Prime users.

The report said that talks about the service are in very early stages, and it is unclear whether any publishers have signed on. Analysts expect Amazon will be releasing a tablet, possibly by year end, as a lower-cost alternative to the iPad.

AT&T starts up defense: On Friday, AT&T rejected Justice Department claims that T-Mobile is a unique, low-cost wireless company and that a merger would eliminate a key competitor in the industry, The Washington Post reported. Instead, AT&T has framed T-Mobile as a provider that’s “caught in the middle” between the top three nationwide carriers and smaller companies such as MetroPCS and Cricket.

Carol Bartz resigns as Yahoo director: Carol Bartz has resigned as a member of Yahoo’s board of directors, according to board spokesman Charlie Sipkins, Bloomberg reported.

But the shake-up may not be over at Yahoo — at least one key investor is now calling for more members of the board, including Chairman Roy Bostock, to resign as well.

Speculation is also growing about Yahoo’s future. The company is believed to be considering a serious rebranding, but there have also been reports that it’s in talks to buy Hulu and in talks to be acquired by AOL, Bloomberg reported Friday.

YouTube founder revamping Delicious: YouTube founders Steve Chen and Chad Hurley are trying to revive Delicious, the bookmarking service they purchased from Yahoo in April. The service is still attracting about half a million users per month, according to the New York Times, and Hurley and Chen told the newspaper that they’re hoping tap into the social search movement and will eventually add “sharply focused advertising” to the new Delicious.

‘Bubble Boys’: New York Magazine has an in-depth profile of the “bubble boys,” the young men in Silicon Valley who are aiming to follow in the footsteps of Steve Jobs and Bill Gates, staying up for all-night coding sessions and betting everything on creating the next best thing — even if it’s unfinished at launch.

“Done is better than perfect,” Feross Aboukhadijehm, creator of YouTube Instant, a site that lets you look through YouTube videos in realtime, told the magazine.