I think Yahoo will buy Bing within 3 months after MSFT brings in the new CEO. MSFT will be more focused on the enterprise market and Yahoo will use Bing to fight google.
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1. Cut. Cut as much as possible.
2. Refocus on mobile. May be partner with nokia or microsft or other falling company to provide default content to other platform
3. When yahoo is stable enough. Sell or merge the company.