I'm obviously a NEO resident but not a Clevelander, but I can tell you that enrollment within the Cleveland Public Schools continues to decrease to the point that it's time for another round of closing buildings. Glenville was a contender in the DI football playoffs within the past decade and has since seen its male enrollment decrease to the point that they would be DIV if not for competitive balance pushing them back into DIII. Collinwood is next door to Glenville (to the east), so it makes geographic sense that they would merge.
I cannot speak to the social or political ramifications of such a merger, but they can be tricky to execute for a variety of reasons. Incidentally, Collinwood was banned from the OHSAA postseason in all sports either last year or the year before after the school failed to meet the OHSAA's membership requirement of fielding at least 2 athletic teams during each of the 3 sports seasons. Collinwood is not currently an OHSAA member school but is listed as a DIV football program for computer points purposes, so that gives some idea of the school's current enrollment. Their girls track program started to go downhill when Coach Slapnik retired after either the 2010 or 2011 season.