Despite hurdles seen in the past, Microsoft and Yahoo are still exploring any means possible to find common ground to make some kind of buyout/partnership work. Frankly, Yahoo needs to do something as they are losing their shirts. And regardless of my feelings about Microsoft buying them out, I am just not seeing any better alternatives for them at this point in time.
What is sad is that I can promise you that such a marriage will do nothing for users, only the advertisers and maybe shareholders. The end user will see nothing better coming of this as the search function will suck as much as ever, now with a different ad base and likely more of it.
Personally, I see this as a Microsoft’s last swipe to try and keep pace with Google in the ad market as Microsoft’s AdCenter has been pretty lame in my opinion. Speaking as someone who has used them all, Google remains the king in the ad market and seeing Yahoo/Microsoft joining forces will only serve to make more competition for Google. Again, the end user will not see any quality of product at all, which saddens me greatly.