Friday, November 12, 2010

AOL may shortly create a Yahoo acquisition offer

Yahoo, Inc. is considering the fact they might shortly have offers from numerous different individuals that want to purchase the company. AOL is thinking about making a purchase offer for Yahoo Inc. AOL is just one of the numerous entities thinking about a purchase offer for Yahoo — private-equity firms are also in discussions.

Yahoo and AOL together?

AOL is an Internet and media company that began life as The United States Online. Yahoo is the very same thing. It’s an internet and media business as well. Yahoo makes the bulk of its income from search and advertising business. AOL and Yahoo have discussed merging once before, in 2008. The companies would compete mostly in search and marketing, where the two separate businesses aren’t doing well against search behemoth Google. While both corporations have a respectable number of visitors, their visitor interaction and time on site has been going down.

AOL getting Yahoo up

AOL could buy Yahoo out in different ways. There’s a relationship between Yahoo and Goldman Sachs. This has been there for a long time. Microsoft withdrew its bid in 2008 after trying to acquisition Yahoo. The purchase of Yahoo is something AOL has been discussing with numerous private equity firms. Silver Lake Partners and the storied Blackstone group are both front-runners for possibly funding the AOL-Yahoo partnership. The control of the connection would be maintained by the partners more than likely.

The design of AOL Yahoo

AOL and Yahoo have both been in the business a while. Mergers and spin-offs are things they know about. After merging, AOL spun off of Time Warner Cable in 2009. Just this year, Yahoo has developed a partnership with Microsoft’s Bing search engine. As talks are in their early stages, you will find no information on how the merged business would operate. The whole thing is going to result in being Google vs. a mega business involving Bing, Yahoo and AOL more than likely.

Articles cited

Wall Street Journal

online.wsj.com/article/SB10001424052748703673604575550661101743360.html#ixzz14jFQMzBr



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