I've always thought Yahoo could stand on its own. What do they need Microsoft for? Money?
If I were Yahoo I would;
1). Go strong on YPN, cut everything to the bone and go after Adsense Publishers and Adwords Customers with vengence.
2). Advertise, Advertise, Advertise, (t.v., magazines, everywhere offline to rebuild the brand specifically for "Search"). The catch phrase Do you Yahoo? should be promoted to compete directly with the "I googled [this or that]" vernacular.
3). Make www.Yahoo.com a search box with a few links to the rest of the content and services -- that way the average "searcher" will not have to wait for news, mail, personals, and everything else to load to do a quick search, (ala [search.yahoo.com...] )
4). send me a small check for helping save them from disappearing into oblivion -- or worse, becoming another failed MSFT acquisition.
NOTE TO YAHOO: sticky me for mailing address, thx.