The New York Times reported Feb. 4 that Google CEO Eric Schmidt contacted Yang to suggest a partnership between their companies. A partnership with Google may allow Yahoo to outsource its search service, shedding the costs of running its own search engine and sharing ad revenue with its larger rival.
What a way for Google to get rid of all competition in the search technology! A very smart move because it could potentially deny Microsoft access to a high quality search engine. If that happens the Yahoo acquisition does not make sense for Microsoft at all.