macnn/electronista

04/16/2008, 12:10am, EDT

Wednesday, April 16th

Yahoo and AOL to combine operations?

Yahoo and AOL are reportedly examining the potential combination of their respective internet operations, which would involve a 20-percent stake of the former company. According to Forbes Techland, the deal would fold AOL into Yahoo, who would then repurchase several billions of its shares at a mid $30 figure. Time Warner will make a large cash investment into Yahoo for this deal to occur.

The move comes after Microsoft was denied by Yahoo's board of directors in what was interpreted as a hostile takeover, since the bid was unprovoked on Yahoo's part. Microsoft originally offered Yahoo $31 per share.

Yahoo is also examining an advertising deal with Google, where the former would run a two week trial of Google's search advertising service.


Filed under: Investor, industry
Other story tags: Microsoft, Yahoo, AOL, Time Warner

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MS
0
04/16, 6:31am, EDT
Presumably this AOL, Google deal is to help fend off the MS attack?
Mac Enthusiast
Joined Jan 2001
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Yawn....
0
04/16, 10:50am, EDT
It's almost amusing how Yahoo tries all of these deals to fend of the MS 'attack', yet still fails to improve its own product - which would solve their problem quicker and better.

Of course, all things considered, AOL and Yahoo are a great match - but not for the reasons either believes.
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re: yawn
0
04/16, 11:10am, EDT
yes Yahoo needs to turn their ship around, but that's not going to happen in a month or two. First priority for them is to fight off the MS bid for control. After the dust settles from that one way or another, they can work on improving their product.

Frankly, I don't think they can do it. Google gets it, Yahoo does not. But I sure don't want MS taking over Yahoo... well, unless it means they will piss away a lot of money and ruin Yahoo's remaining value as it is absorbed into the Borg collective.
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Great Match
0
04/16, 3:22pm, EDT
I agree. A pact between Mr & Mrs Devil, in the sense of user unfriendliness, not necessarily ethics. Maybe they can feed off each other by eating even more dirt.
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climacs
0
04/16, 4:27pm, EDT
agreed that I believe as well that Yahoo can't do it, for lack of 'getting it'.

Personally, I do want MS taking over Yahoo - it will make MS piss away a lot of money, receive no tangible benefits in return, and it will finally put Yahoo out to pasture.

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come again?
0
04/17, 5:48pm, EDT
What was done to help them remain independent? The link isn't helpful at all.

Seriously, M$, if your offer isn't good enough to convince Yahoo's executives to come over (or a majority of investors), then either improve it, or give it up. You're just wasting more money on the whole fiasco by hiring lobbyists.

Schmucks.
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