Yahoo Inc., is a business with a huge number of probable suitors. AOL has begun discussions that may involve purchasing Yahoo. AOL is just one of the numerous entities thinking about a purchase proposal for Yahoo — private-equity firms are also in discussions.
Yahoo and AOL together?
The internet and media company AOL started out with a different name. The America Online company was the beginning of it. Yahoo is the very same thing. It is an internet and media business as well. There are only a couple things Yahoo really makes cash on. Search and advertising are those things. AOL and Yahoo have discussed merging once before, in 2008. The businesses aren't doing well separately against Google but would do much better if united against Google. The visitor interaction and time on site have gone down despite the fact that a lot of visitors nevertheless go to each site.
How AOL would buy Yahoo
Getting out Yahoo would be AOL. This can take place in different ways. Goldman Sachs and Yahoo have had a relationship for quite a while. Microsoft withdrew its bid in 2008 after trying to acquisition Yahoo. The purchase of Yahoo is something AOL has been discussing with many private equity firms. The AOL-Yahoo partnership might be funded by Silver Lake Partners or the Blackstone group. There haven't been any details discussed yet. The partners would likely have control of the partnership though.
The AOL Yahoo look
AOL and Yahoo have both been in the business a while. Mergers and spin-offs are things they know about. AOL was spun off of Time Warner Cable in 2009, after they originally merged a couple of years earlier. Microsoft's Bing search engine had some help. Yahoo helped with it. There are no details on how the merger would go since it’s in the early stages still. However, it is a likelihood that search will, for the moment, come down to a Google vs. AOL / Yahoo / Bing conglomerate.
Info from
Wall Street Journal
online.wsj.com/article/SB10001424052748703673604575550661101743360.html#ixzz14jFQMzBr
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