It is possible since Yahoo is wanting to keep Microsoft at bay. Yahoo may want to revisit a previous offer from Google or a possible partnership. But it appears that Google would have to worry about several anti trust suits if they do buy Yahoo. The latest in the Yahoo Buyout http://news.yahoo.com/s/nm/20080204/tc_nm/yahoo_microsoft_alliances_dc I also found this interesting in the article. They say some are saying this is Microsofts attempt to pull users away from Google SE by buying out Yahoo.
If that is the case, then Google will have a lot to laugh at the expense of Microsoft. However, time only will tell what emerges in the future?
I really couldn't care less. Whatever the outcome of this is, we webmasters, will continue doing our usual jobs.