After Google had pulled out from the advertisement partnership deal, Yahoo CEO Jerry Yang said on Wednesday that Microsoft Corporation's best option was to buy Yahoo Inc.

By beginning of this year Microsoft made an unsolicited $47.5 billion ($33 per share) takeover deal but Yahoo management rejected the deal and decided to go ahead with an advertisement partnership deal with rival Google.

But now Google pulled out and Yahoo doesnt have much options as company's profit is diminishing in every quarter and loosing search market share to rival Google.

Yahoo shares rose 4.27 percent on Wednesday after Google pulled out from the deal hoping that Microsoft would come up with another deal.