Apparently, Microsoft and Yahoo have entered into negotiations to discuss either cooperation or merger.  No doubt, this is in reaction to the fact that Microsoft continues to lose market share to Google, in search.  Meanwhile, Yahoo only continues to tread water.

This is a huge departure from the rumors that have been refuted, in the past, concerning a possible merger.

Bottom line, both companies continue to lose to Google.  And, with recent earnings disappointments, Yahoo is really scrambling to make something happen.  I am sure that Google’s acquisition of Doubleclick, a few weeks ago, only drove both companies, further, into panic mode.

As disorganized as the Microsoft AdCenter product is, I can only imagine what a cluster #$#$ a merger between these two giants would cause.  I truly believe that a merger would make Google even more powerful, as these two giant companies try to figure out how to work together.