Citing “people familiar with the matter,” Kevin J. Delaney at the Wall Street Journal writes:
<<Yahoo Inc. is close to announcing that it plans to carry search advertising from Google Inc. as part of a test that could lead to a broader partnership (...)
The short-term test, involving a very limited percentage of Yahoo’s Web search queries, is designed for the two sides to evaluate the revenue potential of a broader search ad outsourcing arrangement. They have been discussing such an arrangement as part of Yahoo’s pursuit of alternatives to Microsoft Corp.’s unsolicited acquisition offer>>
Kevin adds that analysts think outsourcing search advertisement to Google would “boost Yahoo’s cash flow” as Google’s system brings in more money per search query. (And You may still remember that years ago, Google powered the Yahoo search results themselves...)