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The two search engine giants have announced a two-week experiment that will see them share advertising space. Google will be able to place ads alongside 3% of search results on Yahoo's website. Whilst in no way implying a merger, it is a strategic alliance where the emphasis is more on strategy that alliance.
It will, at least, frustrate Microsoft's overtures. My concern is that such a takeover will do no good to the consumer. Microsoft already holds a virtual monopoly in computer software. It would be of little interest to internet users to have competition reduced in such a market. I feel Bill Gates has enough already. More could be seen as definitely over-egging the pudding!
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