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Digital
Could AOL merge with Yahoo?
By CMU Editorial | Published on Tuesday 7 December 2010
According to Reuters, bosses at AOL is considering breaking the business into two, and merging one half of it with Yahoo! Though we should add that Yahoo! hasn’t been told about this plan yet.
That said, we should also say this isn’t a new proposal. Before AOL demerged from Time Warner last year it was proposed the web firm be split into two companies, an internet service provider and a content-and-advertising outfit. The former could be merged with another US ISP, most likely EarthLink, and the latter sold to Yahoo!
Insiders have told Reuters that the proposal is being reconsidered by the now independent AOL, though things are at an early stage, mainly because both EarthLink and Yahoo! have entered into new ventures since Time Warner first floated the proposal and may not now be in a position to do an AOL deal. Nevertheless, the web firm’s share price rose yesterday as speculation of a split up and sale gained momentum.