Yahoo! Might Not Look for Buyout Now

With Jerry Yang stepping down from the top position at Yahoo! (YHOO Quote), many expect the path is now clear for Microsoft (MSFT Quote) to swoop back in with a bid to acquire the ailing Internet search giant.

Some industry observers argue, however, that Yahoo! can remain a stand-alone business, and even succeed, if it were to stop entertaining thoughts of a buyout and instead come to an agreement with Microsoft on a paid-search deal.

Gene Munster, an analyst with Piper Jaffray, said in a research note to clients Tuesday that whomever Yahoo!'s board selects as a replacement for Yang will indicate whether the company has plans of either continuing to compete on its own or looking for a new acquisition or partnership agreement. ...