Microsoft Merger or Google Gamesmanship?

This morning, reports from the New York Times as well as other sources suggest that Microsoft initiated merger/acquisition talks with Google over two months ago. The pairing of the two companies would marry the world's largest software company with the world leader in search. Is the recent annoucement of a pending IPO by Google a certainty or merely gamesmanship to better their bargaining position with arguably one of the twentieth century's greatest m&a gamesmen? Regardless of the outcome, it has been an exciting week, what with pre-IPO Google-mania on the rise, the very public launch Amazon's creative solution for outflanking Google's squishy ball entrepreneurs, and tody's announcement that Bill Gates has released the hounds on Google.
And we thought that what looks to be the greatest economic rebound in two decades was going to be the most exhilarating sign of things to come. Silly us.