Is Yahoo! (NASDAQ:YHOO) 2009 going to be a rerun of Yahoo! 2008?

With the online giant set to report earnings on Tuesday, it's a fair question to ask. The media is abuzz over CEO Carol Bartz talking to Microsoft (NASDAQ:MSFT) on an advertising deal, possible layoffs, and more executive defections.

It's starting to sound a lot like Jerry Yang's version of Yahoo!, only neither company has the right to be as headstrong and bullheaded as it was last year.

With Google (NASDAQ:GOOG) blowing past Wall Street expectations on Thursday, the bar is once again raised on paid search. Big G continues to pull away from the competition. Yahoo! on Microsoft's shoulders isn't as tall as it would have been a year ago, relative to Google's growth spurts.

Bartz wasn't brought in to shake hands with Microsoft's Steve Ballmer or to wave a white flag of surrender. That's why I can't see Yahoo! handing over its paid search business to the less relevant Microsoft. What would become of Yahoo! in that scenario? It would be like going to see the E Street Band sans Bruce Springsteen or Destiny's Child without Beyonce.

However, expectations may be too high for what Bartz can -- and will -- do. She may be the boss at Yahoo!, but she's still no Springsteen. Let's just hope she has not only a hungry heart, but a smart one, too.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Was buying Skype a mistake for eBay (NASDAQ:EBAY)? We'll find out early next year, when eBay takes the voice and video chat platform public. Sure, eBay already took a $1.4 billion charge two years ago to write down its Skype investment, but now the market will have a chance to decide if eBay gets out with a capital loss or gain on the balance of its investment.
  • You know that skies have to be clearing in a week in which Sirius XM Radio (NASDAQ:SIRI) receives a credit rating upgrade from Standard & Poor's and creditors gave the troubled MGM Mirage (NYSE:MGM) CityCenter project in Vegas a small break. Baby steps, Mr. Market. Baby steps.

Until next week, I remain,

Rick Munarriz