First, Sean Suchter, VP of search technology at Yahoo, left to become general manager of Microsoft’s Silicon Valley Search Technology Center. Then Yahoo search scientist Qi Lu followed him, tapped as president of Microsoft’s Online Services Group. And soon after that, Larry Heck, former VP of search & advertising sciences at Yahoo Labs, accepted a job in the R&D department of the software giant’s online services division. Now Yahoo alum Jan Pedersen has joined them as well. Admittedly Pedersen arrives at Microsoft (MSFT) by way of Amazon’s (AMZN) A9.com. But prior to that gig, he was chief scientist and VP, Search and Advertising Technology Group, at Yahoo (YHOO).

Apparently, Microsoft is going to combine its search business with Yahoo’s one way or the other.

The new Ask is faster than its predecessor. Its search results are more relevant and sharpened by structured data (TV listings, etc.) where available. And the little search engine that couldn’t is still using semantic technology to interpret and answer questions put to it by users. “To call it an all-new Ask is wrong; it’s an evolution of Ask,” said Barry Diller, CEO of Ask parent IAC/InterActiveCorp (IACI). “I think it’s going to help us primarily in [visitor] retention and frequency. That is really its goal.”

But while it might appeal to some, Ask’s latest iteration isn’t likely to make much of a difference in the brutish battle for search engine market share. But then Ask doesn’t need much, does it? The search business is enormously profitable. As Microsoft’s (MSFT) Don Dodge once noted, every market-share point in search is worth a billion dollars or more. So if Ask manages to boost its share of all searches even slightly, it’s a success. “Search revenue for us is very profitable and it’s certainly growing,” said Diller. “Does it matter whether or not we take big chunks of…market share? No. Would we like and hope to? Yes.”

The new Ask is faster than its predecessor. Its search results are more relevant and sharpened by structured data (TV listings, etc.) where available. And the little search engine that couldn’t is still using semantic technology to interpret and answer questions put to it by users. “To call it an all-new Ask is wrong; it’s an evolution of Ask,” said Barry Diller, CEO of Ask parent IAC/InterActiveCorp (IACI). “I think it’s going to help us primarily in [visitor] retention and frequency. That is really its goal.”

But while it might appeal to some, Ask’s latest iteration isn’t likely to make much of a difference in the brutish battle for search engine market share. But then Ask doesn’t need much, does it? The search business is enormously profitable. As Microsoft’s (MSFT) Don Dodge once noted, every market-share point in search is worth a billion dollars or more. So if Ask manages to boost its share of all searches even slightly, it’s a success. “Search revenue for us is very profitable and it’s certainly growing,” said Diller. “Does it matter whether or not we take big chunks of…market share? No. Would we like and hope to? Yes.”

In a white paper published Tuesday, the Institute decried the deal as one that “could end up as a black hole that swallows up Yahoo, despite Yahoo’s intentions to stay in the business.”

Apparently, it doesn’t quite buy Google’s claims of altruisim. The company wants only to aid a floundering ally? Really?

“It strains credulity … to believe that Google would agree to an arrangement that gives its chief rival $800 million to invest in efforts that would, if successful, reduce Google’s market power,” the AAI wrote in its white paper. “… The agreement between Google and Yahoo is not a merger, of course, but serious concerns have been raised that the agreement will effectively result over time in Google’s acquisition of all or at least a substantial part of Yahoo’s paid search business.”

Still, the agreement could just as easily not do that. Said the AAI, “It is possible that the transaction will throw off sufficient revenue for Yahoo to not only protect its core business during difficult economic times but to underwrite its plans to become a stronger competitor than it now is.”

So, Google (GOOG) is either a friendly shoulder on which Yahoo (YHOO) can steady itself or a vast rainbow-colored black hole waiting to engulf it. Given that either-or, what to do?

Says the AAI: “The government should insist on a consent decree which preserves Yahoo’s incentives to remain in the paid search market. If such a consent decree cannot be achieved, then the government should seek an injunction to prevent Google and Yahoo from implementing their agreement.”