AOL CEO still trying to pitch merger with Yahoo

Last month, a rumor that AOL was interested in a merger with Yahoo was pretty quickly rebuffed by sources inside Yahoo. But apparently AOL CEO Tim Armstrong doesn't take "No" for an answer. Reuters reports via unnamed sources that Armstrong has been meeting with AOL shareholders in past two weeks to push for an idea to sell AOL to Yahoo. The article quotes one of the unnamed shareholders as saying, "The focus in the meeting has gone from a year ago of being around the fundamentals to now being how could you carve this up, what are separate assets worth, are there ways to sell off the business to extract value from them."

Armstrong has reportedly told the stockholders that a merger between AOL and Yahoo could result in a total savings of between $1 billion and $1.5 billion. The savings would come from shutting down web sites that duplicate content along with data centers that could be closed due to overlapping locations. A combined AOL-Yahoo merger might also be more attractive to big ad companies seeking to make major ad purchases.

Yahoo has been rumored to be taking inquires from other companies seeking to purchase the company after it kicked out its latest CEO Carol Bartz in September. Microsoft has been said to be mulling over a bid to acquire Yahoo. Microsoft tried once before to buy the company a few years ago but the two organizations were unable to agree on a price. Yahoo has also been rumored to be thinking about taking the company private.

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13 Comments

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When Microsoft offered nearly 3x's the stock value years ago, you all should have took it. How about MS just compete you totally out of business. Which they could easily do. But to prevent the DOJ from breathing down their necks they won't. Likely tho, the DOJ wouldn't allow MS to buy Yahoo. and I am sure Google would be against it too.

I just can't imagine these two companies complimenting eachother well. They may have some good sites or services, but they're still two companies that failed to change with the times and innovate. I can't imagine all of that combined into one lumbering company... They both need to trim things, not pile more on...

Who cares about Yahoo you say? Oh, how about the almost 300 million people who use their email service every day? They are the top email provider in the US you know. They own quite a few other services too.

TRC said,
Who cares about Yahoo you say? Oh, how about the almost 300 million people who use their email service every day? They are the top email provider in the US you know. They own quite a few other services too.
Well actually they are "one" of the top email providers. Hotmail has over 370M users, pushing Yahoo Mail to second place.

KingCrimson said,
Let these relics die.

So what's the point of starting a tech company as a career if 10-15 years in everybody is telling you you're old news and you should lock your doors forever? Who cares if they're relics?

Apple is older than Yahoo. So are IBM, Nintendo, and whoever makes your Halo themed underwear. What defines a relic? Perception of hipness?

It's all hilarious, because if they rebranded, everybody would remember who they were and say they still suck, but if EVERYBODY quit and then ALL OF THEM started a new company together with a new name doing essentially the same stuff, they wouldn't be a relic anymore.

Maybe you should be less attached to which company is which and just care about the technology and the work people are doing. Save being a fanboy for sports and arguing politics with your parents.

Who cares about AOL any more? The same with Yahoo. Both search engines suck, AOL is so 90's. Yahoo's messenger let alone is poorly designed and made. What would either company have to offer the world with this merger?

KomaWeiss said,
Who cares about AOL any more? The same with Yahoo. Both search engines suck, AOL is so 90's. Yahoo's messenger let alone is poorly designed and made. What would either company have to offer the world with this merger?

They're relics of the internet gone-by so they have name value and do surprisingly well now as content portals.

This is the problem with a few tech enthusiasts today. They easily forget that businesses do more than what they're popularly known for. AOL is more than an online service, Yahoo is more than a search engine. But everything else these companies do get ignored in the raw, primal, passionate, fudgy joy of saying something like "Yahoo? Their search engine sucks!"

Joshie said,
This is the problem with a few tech enthusiasts today. They easily forget that businesses do more than what they're popularly known for. AOL is more than an online service, Yahoo is more than a search engine. But everything else these companies do get ignored in the raw, primal, passionate, fudgy joy of saying something like "Yahoo? Their search engine sucks!"

QFT.
Couldn't have said it better myself!

GS:mac

Who the hell is so concerned with preserving Yahoo? With them thinking of going private, the majority owner or stockholder must have a huge boner for the company.