Looks like the what will Yahoo! do rumor mill is ramping up, again. 

This time around, it’s something that seemed unthinkable just a year ago: for Google to power Yahoo!’s ads.

Yahoo! is now sitting at a low of $31B in market cap.  The options that we’ve looked at, being:

- status quo
- merger with eBay
- acquisition by/merger with Microsoft
- taken private

don’t make sense because Yahoo! is walking wounded, despite being extremely popular with advertisers nonetheless. 

Some time ago, I asked could Google buy Yahoo!  Obviously this would raise the ire of antitrust folks because the combined entity would have 80% market share in search.

Of course, by partnering up, instead of selling, Yahoo! and Google stay off the radar of the feds and Yahoo! adds a billion or so to the bottom line thanks to Google’s improved monetization.  I guess that’s the cost of swallowing your pride.

Disclaimer: Long YHOO

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