http://news.yahoo.com/s/nm/20080612/bs_nm/yahoo_microsoft_dc_1 I think its ok - Yahoo have some strong future plans which looks good, they dont need any kind of Merger or buy up.
Yahoo is in a death spiral. Think about it- a top Search Engine using the results/ads from a competitor? Where I come from this is the fox in the hen house. . . and we know who wins that fight.
This really sucks for Microsoft, since Yahoo will end up With Google, personally i wanted Microsoft to take over Yahoo because it would further heat up the battle between Google and Microsoft which just means better services from both Google and Microsoft, like extra space in your inbox!!