Report: AOL-Yahoo Merger Talks Get Serious

Against the backdrop of economic meltdown Yahoo and AOL are reportedly continuing their merger talks in earnest. We wrote about the potential combination several times during the initial wave of MicroHoo negotiations, when Yahoo approached TimeWarner as an alternative to Microsoft, and more recently again.

Based on back and forth discussions with both Yahoo and Microsoft over the past several months, it appears that TimeWarner genuinely does want to deal AOL to someone (there are really on a few choices). TechCrunch speculates that the deal on the table contemplates a Yahoo acquisition of all of AOL’s business except the ISP services. TimeWarner would also throw in cash and would have a one-third stake in the new entity.

The current economy may make any such deal more likely than if markets were healthy.

There are both regulatory and integration challenges in any YahOL or AHoo scenario. It would trigger many distracting months of regulatory scrutiny in the US and Europe and then, assuming it were approved, there would be the “non-trivial” challenge of bringing the many internal units together.

I also suspect that if a Yahoo-AOL combination were announced in the near term, it would doom the increasingly unpopular Google-Yahoo paid search deal.

Related Topics: AOL: General | Channel: Industry | Yahoo: Business Issues | Yahoo: Partnerships


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

Connect with the author via: Email | Twitter | Google+ | LinkedIn


Get all the top search stories emailed daily!  


Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.

Comments are closed.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest


Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States


Australia & China

Learn more about: SMX | MarTech

Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!



Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide