In August of this year, Google handled 63 percent of all search queries in the U.S., while Yahoo's share fell to 19.6 percent, according to comScore. The story was much different a few years ago. In February 2004, Google controlled 34.7 percent of U.S. searches, while Yahoo's share was 30 percent, according to comScore.

The evolution of the search engine market led to Yahoo's deep crisis. If Yahoo had remained competitive in search, it would be generating significantly more revenue from search advertising and likely finding itself in a much stronger position.

Financial and industry analysts agree that over the past five years, Yahoo has lost its technology edge, which has caused it to miss major growth opportunities in areas like search, on-line video, blogging, syndicated feeds and social networking.

This year, as the Microsoft drama unfolded, Yahoo has seen a steady exodus of high-profile staffers, as these formerly loyal and committed business and technology leaders give up on the company and morale drops.

Google and Yahoo signed a deal in June to let Yahoo run search ads provided by Google. Google and Yahoo had expected to turn on the deal's switch early this month, but have delayed the implementation, while they wait for the U.S. Department of Justice to examine the antitrust implications of the agreement. Yang said the companies continue their conversations with the DOJ.