Yahoo-AOL merger likely by month end

Author: Gareth Halfacree
Published: 7th October 2008
Comments (7) Stumble
AOL is likely to become a Yahoo concern by the end of the month if rumours are true - although Time Warner will still own a third.

AOL is likely to become a Yahoo concern by the end of the month if rumours are true - although Time Warner will still own a third.

While Yahoo was unwilling to do business with Microsoft, it looks like the company isn't entirely against the idea of a merger with a larger corporate overload: Time Warner, for example.

According to news over on TechCrunch, Yahoo is currently in the latter stages of negotiations with Time Warner over a possible merger – read acquisition of ailing content provider AOL – that could take place as soon as the end of this month. While this isn't the first time the two companies have discussed the possibility of joining forces, it's certainly the first time an almost-firm completion date has been uttered by either party.

The deal on the table is that Yahoo would acquire AOL from parent company Time Warner and take over the content, advertising, and miscellaneous service divisions while leaving the ISP side of things in situ. In turn, Time Warner would give Yahoo around $2 billion for a one-third stake in the newly combined organisation, leaving Yahoo as the majority shareholder.

Currently AOL generates around $2.4 billion annually, but it's thought that the advertising know-how that Yahoo would bring to the table could bump that figure up significantly – something that Time Warner will be banking on in order to recoup its outlay. The combined entity would, according to figures from Comscore, account for approximately 48 percent of all web-based email accounts world-wide – beating Microsoft's 42 percent into second place – and take care of around 39 percent of all worldwide instant messaging needs.

Do you think Yahoo has what it takes to turn AOL into a thriving business once more, or is Time Warner just looking to offload a struggling concern so it no longer needs to worry? Is Microsoft likely to want to purchase the entire joint entity outright once the merger goes through? Share your thoughts over in the forums.
Quote The_Pope 7th October 2008, 09:19
LOL @ the 39% of people using AIM and / or YIM :P
Quote GregTheRotter 7th October 2008, 09:47
I think when americans say, 39% of the 'world' they mean 'America' :P
Quote proxess 7th October 2008, 10:14
Those figures definitely seem to be completely out of proportions.
Quote Flibblebot 7th October 2008, 10:40
Two hasbeens and once-players helping to prop each other up and reminisce about the good ol' days, IMO.

I'd question the 48%/42% of webmail figures too - does that mean that Google only has 10% of the market?
Quote Mentai 7th October 2008, 10:57
I'm not too sure about those figures, but I know a lot of asian countries use Yahoo in association with their media (eg japan), so conceivably it could be 39% including AIM
Quote customh 7th October 2008, 20:34
I wonder what would happen with AIM/YIM since Live messenger and Yahoo already work with each other. If they all worked together it would be great for everyone involved. For instant messaging anyways...
Quote johnmustrule 8th October 2008, 01:35
Why won't AOL just DIE!
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