"Matt Cutts informed us that Google will very soon begin treating subdomains and subdirectories the same in this fashion: there will be only 2 total urls from a domain in any set of search results, so no more getting 3, 4 or however many spots via subdomains. We didn't get any more information than just that basic heads-up."
The change could be beneficial to some and costly to others as some lose dominance in the search results and others gain exposure by moving up.
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