Tomorrow afternoon, Yahoo will announce its third quarter earnings — expected to be bad — and will likely confirm rumors of layoffs in the thousands. Analysts predict revenue will increase only seven percent, while earnings will fall more than 20 percent.

The news comes on the heels of Microsoft's statement that taking over the Internet company might actually make sense, a view that pretty much only Microsoft executives and investor Carl Icahn seem to believe.

Yahoo stock has plunged more than 50 percent since the company rejected Microsoft takeover attempt in May. The Seattle-based computer company initially offered $31/share, eventually upping to $33/share, but Yahoo's board said no, holding out for $37/share.