Rumors about AOL's approach to Yahoo

Rumors about AOL's approach to Yahoo
Tim Armstrong, since 2009 CEO of the once mighty online service AOL, talks with advisers to the search and content portal Yahoo bedrock on a merger of two companies. The financial news agency Bloomberg reported on yesterday, Friday. Armstrong sets itself accordingly for a takeover by AOL through the much larger player in Yahoo. At the top of the entire group even though he would then stand.
Observers expect that only Armstrong waited for the departure of Yahoo chief Carol Bartz, to launch a renewed advance. Like Bloomberg, citing "initiated persons" reported to the AOL strategist be approached in 2010 to Yahoo. However, Bartz had dismissed him at that time. The New York Times, both companies have the same investment bank for advice, namely Allen & Co,. Whether the financial advisors recommend a course together or may even be used to mediate is not yet clear.
Industry insiders estimate the chances of Armstrong a little. The Yahoo management, the company itself is considered a possible sale of property, said to have little ambition to take over the ailing competitors. In addition, Yahoo founder Jerry Yang is still an important figure in the crucial Board and also a major shareholder. No one expects that Yang from Armstrong can simply bail out.
Both companies have expanded their Web presence increasingly towards content farms, contact similar target groups and are faced with a shrinking business and faced the all-powerful adversary Google. Headquartered in Sunnyvale, Calif. The Web pioneer Yahoo succeeds however still make money. In contrast, the New York-based AOL has been writing since 2009 of the separation from former parent company Time Warner repeated losses.
Yahoo is currently worth $ 18.3 billion, AOL is still just 1.6 billion dollars and has lost another 5 percent in trading yesterday.