04/16/2008, 12:10am, EDT
Wednesday, April 16thYahoo 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 $31 per share.
Yahoo is also examining an advertising deal with Google, where the former would run a two week trial of Google's search advertising service.
Filed under: Investor, industry
Other story tags: Microsoft, Yahoo, AOL, Time Warner
,
, 6
,
,
,
,
, 
subscribe to comments
for this article
Of course, all things considered, AOL and Yahoo are a great match - but not for the reasons either believes.
Frankly, I don't think they can do it. Google gets it, Yahoo does not. But I sure don't want MS taking over Yahoo... well, unless it means they will piss away a lot of money and ruin Yahoo's remaining value as it is absorbed into the Borg collective.
Personally, I do want MS taking over Yahoo - it will make MS piss away a lot of money, receive no tangible benefits in return, and it will finally put Yahoo out to pasture.
Seriously, M$, 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.