Here's what Joe Rosenberg has to say about it:
"Ballmer is a great operating man but he lacks financial acumen. He ought to be thinking more of Microsoft employees who own a lot of Microsoft stock and have nothing to show for it in many years. If the stock doesn't start doing better, Microsoft will lose good people."
It rings so true! Apparently market has already discounted Microsoft value by exactly the amount of the merger - $40B - reaffirming the deal as completely worthless.
The Reuters article is here: http://www.reuters.com/article/technologyNews/idUSN1760137520080217.
Also, NYT writes today basically the same thing I was saying always - technologically the companies are so incompatible that it's hard to expect that the marriage will work out: http://www.nytimes.com/2008/02/18/technology/18integrate.html.
It repeats most of my arguments here: http://1-800-magic.blogspot.com/2008/02/50b-down-drain-or-microsoft-bids-for.html.