I’m not enthusiastic about flogging this sickly horse; if you guys want to merge your businesses, you know, knock yourselves out.
Both companies should have been taken private years ago so they have some breathing room to reinvent themselves without having to worry about the innovation-killing tyranny of quarterly earnings growth. Maybe a hostile takeover of Yahoo! by AOL will be the tonic that both companies need to find a new direction.
However: Remember a few years back when Kmart bought Sears using a boatload of private equity dough? It was supposed to bring every Kmart store up to the level of value and service that Sears was known for. Instead, the takeover just sort of Kmart-ified every Sears store. I’m just saying.