Looks like they're finalizing a deal: http://news.bbc.co.uk/2/hi/business/8174763.stm
Personally I'm happy, I use to be a Yahoo'er when it was more popular like in the 90s, but it became a habit to type google in the address bar, it was a simple page that got what I needed. But clearly, the Google Giant has gotten too big IMO. They offer amazing technology, with Street View, and their new phone service they're going to offer soon, but a company like this has power.
I don't trust a huge dominant company with the slogan "Don't be evil", just a tad bit shady
But I don't think the Yahoo! & Microsoft deal will do much. I don't see a end in sight for Google's power.