Just a few months ago, the blogosphere was exploding over the possibility of Microsoft and Yahoo joining up to become an online powerhouse. But after a lengthy deliberation, political jockeying, and pleas for help, Microsoft walked away after Jerry Yang did everything he could to kill the deal.

But the story didn’t quite end there. Since then, Microsoft and Yahoo have gone back to the table twice. First, Microsoft entertained the possibility of acquiring Yahoo’s search for $1 billion and a buyback of Yahoo stock for $8 billion. After that deal fell through, we once again thought it was over. But now, they’re back to talking about a full buyout and Jerry Yang, not Ballmer, is starting to look like the CEO who really wants to get the deal done.

So how does the plan address the major issues Yahoo is currently facing? Shareholders are calling on Jerry Yang to either sell the company to the highest bidder or move aside, the stock price continues to fall, and as more executives jump ship, more people are getting the sense that something quite awful is going on behind the scenes.

All the while, Microsoft is sitting back and watching events unfold. With zero debt on its books and quarterly profit of more than $4 billion to boot, it’s in the best position to save Yang from himself and finally satisfy Yahoo’s long-suffering shareholders. Whether or not it will is another story.

But at this point, Yang has little choice but to go to Microsoft with his hat in hand and ask for a buyout.

The Microsoft-Yahoo soap opera started with Ballmer wanting Yahoo to ensure that his company plays a major role in the online world going forward. Since then, Ballmer’s desire for Yahoo has dwindled and Yang, the once-obstinate CEO, is left wanting Microsoft and hoping that Microsoft will want him back.