AOL planning to buy Yahoo?

In recent months, Yahoo has become the garage sale of the Internet, where many curious tech company shoppers are looking at taking property from Yahoo, and among these curious shoppers is AOL. However, AOL isn't alone, there are several private-equity firms looking at purchasing all of or some of Yahoo.

According to people familiar with the situation, via The Wall Street Journal, AOL is among the top firms interested in buying Yahoo, but why?

Both AOL and Yahoo are on a slippery slope, and slowly descending into oblivion. So why would merging two aging companies some how bring it back to life? Advertising. AOL and Yahoo are facing fierce competition from Google and Facebook, who seem to be the dominant giants in advertising, but merging the two companies might actually serve some purpose, bringing two failing advertising companies and making one decent contender.

There is also rumours of a reverse merge, where Yahoo has invested interested in AOL, after Yahoo disposes of the Alibaba stake.

Talks about the possible take-over of Yahoo are still in the preliminary stages and may never take flight. Talks could take months, even years before a clear-cut decision is made, but this is how Microsoft came to make a search deal with Yahoo last year.

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Yahoo has hired Goldman Sachs to shield the company from any takeovers.

I'm pretty sure Yahoo will remain independent for a while.

AOL is broke as with bebo..... I dont see why these ligering tech companies just dont die for the good of the industry.

MS should gobble AOL and Yahoo in one deal... or maybe they wait for AOL to get Yahoo... and then gobble both, not sure if that sort of deal will be approved tho.

xplatinum said,
I wonder what's gonna happen to Flickr once it's all said and done.

yikes... AOL Pictures... I would stop using it lol.

Just had another thought, this would result in a merger between Yahoo and AoL messenger, which are mostly used in the US, but, with yahoo messenger compatible with Windows Live Messenger, will we get AIM compatibility?

martinDTanderson said,
Just had another thought, this would result in a merger between Yahoo and AoL messenger, which are mostly used in the US, but, with yahoo messenger compatible with Windows Live Messenger, will we get AIM compatibility?

I don't see why they wouldn't try to do that...

Being touched by AOL is a curse to a software product, which includes the beloved Netscape and Nullsoft's Winamp.

So AOL please don't touch Yahoo coz it is bad enough to survive in the market and no one wants an extra kick to bring it into the hell.

computerchan said,
Being touched by AOL is a curse to a software product, which includes the beloved Netscape and Nullsoft's Winamp.

So AOL please don't touch Yahoo coz it is bad enough to survive in the market and no one wants an extra kick to bring it into the hell.

lol, +1

What is that term... Consolidate or die. In AoL's case, they're already dead, but Zombies have a habit of getting up when they shouldn't.

Aol seem to be buying up web content, and other than search with Yahoo!, content is the only other asset they have!

To be honest, I think the best thing for the them to do if they actually do buy it, is to re-brand the whole company. That way they can both can clean the slate and get rid of their of their failing reputation.

thealexweb said,
Didn't MS offer $40bn and their market cap is today $20bn, ouch. Jerry Yang (I think that's his name) is an idiot.

Indeed.

thealexweb said,
Didn't MS offer $40bn and their market cap is today $20bn, ouch. Jerry Yang (I think that's his name) is an idiot.
Meh. What's $20bn? I made that last week. /sarcasm

techbeck said,
Didnt MS already buy them? Or did MS just buy the search?

Just search. They tried to get the whole lot but Yahoo's crazy CEO denied them and then their stock price plummeted.

Tom W said,

Just search. They tried to get the whole lot but Yahoo's crazy CEO denied them and then their stock price plummeted.

Ahh, ok. Well, I didnt think AOL had the money to buy the rest of Yahoo.

Tom W said,

Just search. They tried to get the whole lot but Yahoo's crazy CEO denied them and then their stock price plummeted.

That's one CEO that needs to be looking for a new job.