Outsourcing: The Search Edition

Citi: Yahoo! could outsource search to Google.

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If Yahoo! is serious about staying independent, it could outsource its search business to Google in order make that happen, according to Citigroup analyst Mark Mahaney. He puts the odds of such an agreement at 25 percent—higher than the odds of Yahoo! accepting Microsoft's initial $44.6 billion bid, which it rejected Monday. Still, Mahaney and others say Yahoo!'s falling pre-offer stock price and dwindling share of the search market mean Microsoft's offer remains likely to go through, though the horse trading between the two could go on for weeks.

  • Kirk Shinkle

    Kirk Shinkle is a senior editor for U.S. News Money and manages the Best Funds portal. Follow him on Twitter @KirkS or email him at kshinkle@usnews.com.

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