Yahoo And AOL Together?
February 12, 2008 | by Christopher Nickson
In the wake of rejecting Microsoft, there are reports that Yahoo is reconsidering a merger with AOL.
Yahoo, of course, yesterday famously rejected Microsoft’s $44.6 billion takeover offer, but in the wake of that, it’s looking at its options, among them a merger with AOL, which the company had previously been discussed. However, it came to nothing when no price could be decided. Among the other possibilities is Yahoo selling its ad business to Google.
With Google now the dominant search engine, and Yahoo having gone through eight quarters of declining profits in a row, it’s obvious something has to be done. At the same time, the company isn’t about to sell itself cheaply. In order to meet the demands of the Yahoo board for a valuation of $40 per share, Microsoft would have to tack some $12 billion onto its offer.
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