Well it wouldnt' suprise me, infact it makes alot of sense for both companies. Yahoo used to be the giant of search engines then Google came out and has been kicking their ass ever since. Both companies (M$-Yahoo) have one common enemy: Google. So what better way to try and beat that enemy then band together as one.
The funny thing is if this does happen you'll see Kaiser post some thread in the 4D Forums about "M$ taking Yahoo over" when infact (according to this and other articles) Yahoo has been talking to M$ throughout last year (they just never reached an agreement yet). That part Kaiser would leave out lol.