Reuters is reporting that Yahoo is considering some type of tie-up with Google, potentially something smaller than an all-out acquisition. According to this report, Google Chief Executive Eric Schmidt phoned Yahoo Chief Executive Jerry Yang on Friday to discuss how to avoid a Microsoft takeover, either by offering money or guaranteed revenue in exchange for Yahoo outsourcing its advertising to Google.

Microsoft went public for a whopping a $44.6 billion cash-and-stock bid to acquire Yahoo.

With Bill Gates retirement in Microsoft’s day to day operation – I think this is the right time for them to shift their focus from the classic desktop related software to the new paradigm in computing – the cloud based services and applications.

In case this acquisition happens, I’m more excited as it will benefit us consumers and users as other competing companies will surely be more aggressive as well.

I have many private write-ups related with this topic and I’m really looking forward to a future dominated by my two favorite companies Google and Apple :)