Yahoo and AOL close to merging?

By on April 10, 2008, 8:15 AM
Yahoo has been doing its best to fend off Microsoft's aggressive takeover advances, and according to a WSJ report, the struggling search engine is about to get some help from Time Warner's AOL unit in a deal that would combine the two companies' internet operations.

The Yahoo-AOL deal would involve Time Warner folding AOL into Yahoo and making a cash investment in return for about 20 percent of the combined company. This, along with a multi-billion dollar stock repurchase as well as an advertising tie-up with Google, is part of a threefold plan by Yahoo to present shareholders with an alternative to Microsoft's unsolicited offer.

Microsoft is not standing still, though. The software giant is reportedly considering stepping up its efforts to acquire its rival by teaming up with Rupert Murdoch's News Corporation on a joint bid for Yahoo. Where all this will go remains to be seen, but at the least, Yahoo's latest efforts could help it demand a higher price from Microsoft.

Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.