Rumors are circulating around the web that AOL is interested in acquiring Yahoo. Bloomberg reports that CEO Tim Armstrong of AOL has been in talks with Yahoo’s new council of advisers, now that Bartz is out of the picture. Such a merger, they claim, would help two companies now in decline to regain their momentum against such web giants as Google and Facebook. While Yahoo is valued at more than 10 times the value of AOL, Wired notes that “with additional backing and some kind of plan it wouldn’t be impossible to alter Yahoo’s financial future.”
Kara Swisher of All Things Digital disagrees, and calls the rumors, “the product of over-enthusiastic bankers essentially spinning a tale of hopes and dreams that has no basis in reality.” Both companies have serious problems, she explains, and “it would add a level of messy complexity and potential for more disaster that only a fee-seeking banker could love.”
The likelihood of a merger of sorts may be an ideal scenario for people who want to see the two “also-rans” of the internet survive and possibly even prosper. But until they get their individual acts together, not much is likely to come of the rumors.
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