I reckon it's m' turn to chime in on the fun. I'm never short of an opinion.
First, it'll never work. Two big slow-as-molasses corporate deities merging overlapping services is similar to releasing two rams running full-on at one another: bloody, bloody massacre. AOL & Time Warner, HP & Compaq, etc. I don't think Y! or Microsoft has successfully integrated any of their acquisitions, albeit Flickr has grown incredibly—probably because of Stewart and how he manages his team and dealing w/ his superiors, upper management, (aka the buzzword bullies). Every other buy has had incredible difficulties.
The Big G men have bounced back, hoping to prevent the takeover. I believe that they are afraid that Microsoft will destroy everything good in Y!. How many big interweb companies have the clout, power and money to shape the wild, wild web for societal good, unshackled by the grips (somewhat) of other corporate monsters? No one wants Yahoo! to lose—and they will in this merger—and that's why the Big G doesn't want it to happen.
I doubt that M$ Empire is serious about search and evolving the internet. I reckon it's more personal to King Ballmer and his minions to undermine the Google Kingdom and bring "peace" to the lands. In the end, the bottom line could kill. In a really bad way.
I wish Yahoo! had the power to buy itself back. Take it private and help build the next big thing or something and never be reminded every three months about meeting numbers and all-hands of all buzzwords—now that's moving the needle and taking it to the next level =)
Conclusion: the merger is an attempt to redefine clusterfuck.
See also:
http://www.istartedsomething.com/20080202/microsoft-yahoo-big-mess-comparison/
http://valleywag.com/351618/an-ex+yahoos-instructions-for-microsoft
http://searchengineland.com/080201-132458.php
http://www.blogmaverick.com/2008/02/03/why-yahoo-should-say-yes-to-microsoft/Labels: google, microsoft, yahoo