Posted February 11, 2008 1:44 am by with 12 comments

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The Times is reporting that Yahoo is attempting to restart merger talks with America Online (AOL) as possible way to avoid a potential hostile take over from Microsoft. It is possible this is one of the alternatives that came from the Yahoo board meeting on Friday, where the board has apparently decided to decline the Microsoft bid. I would expect this is not the only possibility that Yahoo is courting though.

Yahoo and AOL held merger talks in the past but were unable to come to an agreement. It is believed the current situation between Yahoo and Microsoft, the impending financial downturn in the US, and Time Warner’s desire to separate AOL from their core content business could make this second round of talks a more desirable and productive conversation.

The Times points out the reality of the situation in which Yahoo may have brought this situation on itself. Last year after having failed discussions with Microsoft about a merger, Yahoo agreed to work collectively with Microsoft to attempt to blunt Google’s growth in the online advertising space. Yahoo apparently has failed to follow through with their pledge or at least not been proactive enough for Microsoft’s taste, which may have directly or indirectly led to the situation we have now.

As I said yesterday each day brings a new and interesting twist to the situation. These are potentially monumental changes for the Internet marketing world. I am sure we will all be waiting expectantly for Yahoo’s next move. Anyone care to fathom a guess as to what it will be?

  • Very good news. Merger between large companies is always good. So it seems that Aol will be a part of the Microsoft.

  • Dumbest thing Yahoo could ever do. AOL cant give anything that Yahoo needs right now and already has its own problems. Actually these are only rumors, I dont expect this to happen.

  • The plot thickens! But then like someone here said, maybe these area all rumors.

  • Yahoo losts its mind…

  • You have got to be kidding! Yahoo would be crazy to let AOHELL get into their business.

  • Roderick is anyone talking Yahoo and Apple? It seems that as apps and the desktop moves to the web, Apple faces the same challenges as MSFT.

  • Douglas

    AOL? Of all companies? Even Microsoft is a better choice. Yahoo should be stay independent, all other options are taking us towards a world with less symbols and a plain monochromatic industry. By the way, this is hilarious:—Tips-for-Yahoo-5794173

  • Yahoo must feel a bit like the prize pig here. 🙂

    It seems as though everyone wants a piece.

  • Microsoft really was the best variant

  • Zen

    They should have gone with Microsoft.

  • Another interesting twist in the daily soap opera. I’m curious to see if Apple gets involved too.