There are reports circulating around the Internet that Google is consider buying Yahoo or is helping private company to acquire the core parts of Yahoo. This strikes at me as odd. Acquiring Yahoo would run into anti-trust issues and would give Google a virtual monopoly in the search engine business.
To me Google is better off with Yahoo as a competitor. A competitor that is much weaker and gives consumer a basis to compare Google to. Yahoo clearly does not have the traffic and resources to compete with Google. We will have to wait and keep an eye on all of this to see how things progress.