From MacWorld UK's Microsoft may buy Yahoo and AOL if the latter two merge:

One reason Yahoo’s stock is as high as $19 is because of the extra revenues it says it getting from the Google deal. Yahoo’s stock could plunge to say, $15, if the Google deal gets rejected.
...
While Yahoo’s founder and CEO Jerry Yang has made it clear he does not want to merge with Microsoft, it’s obvious a deal with AOL is more palatable...
Moreover, AOL appears more desperate than ever to do a deal. Its business has continued to deteriorate. Time Warner said AOL’s ad revenues declined 16 percent to $1.1 billion in the most recent quarter...


I'm lost. Why do two losers make a winner? This is the karma for giving up on Netscape, AOL!!! ;^)