Nah, they’re not spinning out a newco with Yahoo, but it’s a start. According to LiveSide:
Microsoft today announced the creation of a new group spun out of Windows Live, the Live Search and Ad Platform. Live Search (formerly Windows Live Search, formerly MSN Search) will join adCenter in a new group that will not report to Steven Sinofsky and Windows Live, but will be headed by Satya Nadella, and report directly to Kevin Johnson, the Platform and Systems division head.