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Yahoo and Google have announced an ad-sharing deal, a two-week experience designed to boost the smaller search company.

"It doesn't make a lot of sense for Yahoo to make an announcement like this when everyone knows a long-term relationship [with Google] can't happen," said Standard and Poor's equity analyst Scott Kessler. "It strikes me as somewhat desperate."

Further, Yahoo hopes to build upon the Google deal by combining its online operations with Time Warner's AOL, which has been stumbling badly for years. Google already handles AOL's search advertising and owns a 5 percent stake in the Time Warner subsidiary.

Moreover, Time Warner would make a cash investment in return for a 20 percent stake in the combined entity, which Yahoo then would use the Time Warner cash to buy off shareholders.

Meanwhile, Microsoft and News Corp, which has been mentioned as a potential Yahoo white knight, are said to be looking at a possible MSN, MySpace and Yahoo combination.

Editor's note: Dumb question. How will its Yahoo ambitions help Microsoft fix its operating system and regain the trust of users? While Apple merrily continues to gain computer and smart phone market share?

Good for us and bad for pretty much everyone else...

What's your take?

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