Results of observations with the Spitzer , Hubble , GALEX , Chandra , and XMM-Newton space telescopes are presented for the Luminous Infrared Galaxy ( LIRG ) merger Markarian 266 . The SW ( Seyfert 2 ) and NE ( LINER ) nuclei reside in galaxies with Hubble types SBb ( pec ) and S0/a ( pec ) , respectively . Both companions are more luminous than L ^ { * } galaxies and they are inferred to each contain a \approx 2.5 \times 10 ^ { 8 } M _ { \odot }  black hole . Although the nuclei have an observed hard X-ray flux ratio of f _ { X } ( NE ) / f _ { X } ( SW ) = 6.4 , Mrk 266 SW is likely the primary source of a bright Fe K \alpha line detected from the system , consistent with the reflection-dominated X-ray spectrum of a heavily obscured AGN . Optical knots embedded in an arc with aligned radio continuum radiation , combined with luminous H _ { 2 } line emission , provide evidence for a radiative bow shock in an AGN-driven outflow surrounding the NE nucleus . A soft X-ray emission feature modeled as shock-heated plasma with T \sim 10 ^ { 7 } K is co-spatial with radio continuum emission between the galaxies . Mid-infrared diagnostics provide mixed results , but overall suggest a composite system with roughly equal contributions of AGN and starburst radiation powering the bolometric luminosity . Approximately 120 star clusters have been detected , with most having estimated ages less than 50 Myr . Detection of 24 µm emission aligned with soft X-rays , radio continuum and ionized gas emission extending \sim 34″ ( 20 kpc ) north of the galaxies is interpreted as \sim 2 \times 10 ^ { 7 } M _ { \odot }  of dust entrained in an outflowing superwind . At optical wavelengths this Northern Loop region is resolved into a fragmented morphology indicative of Rayleigh-Taylor instabilities in an expanding shell of ionized gas . Mrk 266 demonstrates that the dust “ blow-out ” phase can begin in a LIRG well before the galaxies fully coalesce during a subsequent ULIRG phase , and rapid gas consumption in luminous dual AGNs with kpc-scale separations early in the merger process may explain the paucity of detected binary QSOs ( with pc-scale orbital separations ) in spectroscopic surveys . An evolutionary sequence is proposed representing a progression from dual to binary AGNs , accompanied by an increase in observed L _ { x } / L _ { ir } ratios by over four orders of magnitude .