Google mulling role in possible Yahoo bid
news.yahoo.com
news.yahoo.com
A cynical person may think this is ploy to raise stock interest so you could ditch any stock you are stuck with...
In general its over enhancements such as searching for a company and the first result is a Google map location with a nice thumb nail and a link through to the google review site as opposed to the actual business.
Yahoo is in the content business, Google is not. A more likely merger is with AOL or someone else that has more synergy, beyond search.
Of course, there's also the antitrust issue.
The question is whether the government would allow it, due to antitrust.