Aside from dodging Microsoft's attempts to grab them and swallow them up, what is Yahoo up to? A lot of expansion, it seems. Today, Yahoo announced that they will be acquiring a company based in Hungary called IndexTools which focuses on data analysis. The acquisition will give Yahoo a boost to their marketing department, saying that the company's resources will be focused on the small and medium businesses that rely on Yahoo for research data.
The cost of the acquisition isn't mentioned, though a tentative timeline of mid-2008 is stated. Obviously Yahoo sees their own financial situation as strong enough to acquire other companies and expand existing services. Each day that goes by makes it seem that much less likely that they will sell to Microsoft.