All eyes will be on Yahoo Inc. (NASDAQ: YHOO) as it reports quarterly results later today.

Analysts are expecting profit of 9 cents on revenue excluding payments to partners of $1.32 billion, according to Thomson Financial. But that is secondary.

Wall Street wants Yahoo Chief Executive Jerry Yang to prove why the Internet portal is worth more than the $31 per share Microsoft Corp. (NASDAQ: MSFT) has offered. To say investors are skeptical that the Sunnyvale, Calif.-based company can do any better is an understatement.

"They're just trying to save some face and extract some value out of it for shareholder," said RBC Capital Markets analyst Ross Sandler in an interview with Bloomberg News.

Indeed, Bloomberg points out that Yahoo's net income probably fell for the ninth straight quarter. Microsoft CEO Steve Ballmer said that the results -- whatever they may be -- won't affect Yahoo's value to the software giant. Though he hasn't ruled out LOWERING Microsoft's bid, chances are remote that will happen.
Meanwhile, Google Inc. (NASDAQ: GOOG) has off course done much better and last week reported results that handily beat Wall Street expectations. Microsoft CEO Steve Ballmer said that the results -- whatever they may be -- won't affect Yahoo's value to the software giant.

Yang is heading into shark-infested waters on the earnings conference call. Analysts and investors are going to want to know how the company is being hurt by the economic downturn. Are companies cutting their marketing spending? Are they demanding steeper rate cuts?

The real question that Yang will need to answer, though, is what better idea do you have to secure Yahoo's future than the $44.6 billion deal from Microsoft. That would require him to pull a rabbit out of his hat that would leave Wall Street stunned and amazed. Chances of that happening are remote.

Yahoo will eventually take Microsoft's money and run. It's just a question of timing.