Microsoft to buy Yahoo? So reports the Sydney Morning Herald:

Yahoo would plug a “strategic hole” at Microsoft that was not filled by the purchase of AQuantive, announced last week, Mr Noto [a Goldman Sachs analyst] wrote in a note to clients.

AQuantive, which creates web ads and measures whether they reach the target audience, does not give Microsoft the roughly half a million advertisers required to compete against Google, Mr Noto said.

Windows Live Search obviously isn’t being used for search as Microsoft had hoped. But one has to ask: would this be a good thing or a bad thing for Yahoo? And does Google care?