I think if the merger happens, it will take ages to bring the two companies together, Yahoo!’s best people will bail out, and by the time the smoke clears, Google will have lapped Yahoosoft/Microhoo several times. Bad for both sides, and in the end for users, in my opinion.
Then again, I know nothing about running a business. These are just my instincts.
Here's what some other people had to say: