With Buzz, Fire Eagle, etc., their recent dabbles with Google, exceeding revenue expectations, and the prospect of going under, this situation may serve to provide Yahoo! with motivational and creative drives to create really cool applications and services. The drive people can acquire when they realize the severity of the situation and what's at stake can be astonishing.
So, for me, I'd wait it out. Some really innovative things can come of this.
In the very long term, I don't see bright future for Y!, since they don't have any really unique technology. They basically profit from their being the first who created big directory of www links, which is now rather irrelevant.
But talking about employment, I don't think it's useful to think long-term, so it would be perfectly fine for me to work there right now.
If this were true I'd imagine I'd stay until the acquisition and then move on to greener pastures.