Just got this off the wire last night and just couldn’t believe it! Our beloved Yahoo, the main competition to Google may be going on the auction block. Say it ain’t so, Joe!

“ Shares of Sunnyvale-based Yahoo retreated to their lowest price since Jan. 3, losing $1.33 to $26.20 in Nasdaq Stock Market trading. Their 4.8 percent drop was the most since April. They have slipped 19 percent in the past year, compared with a 39 percent gain in Standard & Poor’s 500 Information Technology Index.

Yahoo faced tougher competition as Mountain View-based Google extended its lead in Internet search queries and new rivals took sales in display advertising, the company said when it reported second-quarter results after U.S. markets closed Tuesday. The company forecast revenue for the rest of the year that trailed most analysts’ estimates.

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Microsoft would most likely love to have Yahoo under it’s corporate wing to make a big push against it’s application rival Google. Even though Google’s apps are online-based Microsoft, as we all know, doesn’t like any competition. This possible union would give the Redmond company a possible increase in competitiveness.

Guess we’ll have to stay tuned as more developments occur with Yahoo’s struggle to regain itself in the search query arena.