I've stayed away from this thread because I would hate the thought of any kind of merger (it would put the final nail in the coffin marked "completely pissed off with football" for me) BUT it is something that has crossed my mind more and more recently.
Not because both clubs are in desperate plight both playing wise and financially, although that appears to be the case. But I have a feeling that TV (or Sky if you prefer) and/or the corrupt individuals that rule the PL will see us heading in that direction eventually.
They aren't bothered about grass roots football, supporters of clubs that have existed for a hundred years and more, tradition etc., but they can see money making opportunities with their eyes closed.
When the breakaway occurs, be it European Super League or just the big clubs away from the rest with no inconvenience of relegation to make them fall off the gravy train, then all bets are off and "super clubs" of merged lesser clubs will be fast tracked into the mix. Depending on when this all happens (see Rugby League and Super League for a blueprint) then if neither Sheffield club is big enough, financially, to make the cut, then someone will put together the plan for the merged club to join the party.
I don't believe for a minute it would be in anyones best interest for this to happen at present but the future is TV money and people will sell their grandma for that as we know.
As my interest in football starts and stops at BDTBL, at least it would give me the final push to stop ploughing money into a game I long since started despising rather than loving.