Is AOL Trying to Merge With Yahoo?
AOL Inc. (AOL) Chief Executive Officer Tim Armstrong is talking with advisers to Yahoo! Inc. to gauge its interest in combining the companies after the ouster of CEO Carol Bartz, according to two people familiar with the matter. Armstrong is discussing options for a combination aimed at strengthening the two Internet companies, said the people, who wouldnt be identified because the talks arent public. He has talked with private equity firms and investment bankers from Allen & Co. working with Yahoo, one person said.
Yahoo is unlikely to be interested in a deal for AOL at this time given the companys losses and declining revenue, according to one person familiar with the matter. AOLs market value is about $1.6 billion, while Yahoos is about $18.2 billion. AOL and Yahoo have been struggling to compete against Internet companies such as Google Inc. (GOOG) and Facebook Inc.
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