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Thursday, 13 October 2011 11:00

AOL wants to sell itself to Yahoo

Written by Nick Farell



Oh dear, oh dear


Troubled dial-up ISP AOL wants to sell itself to the  just as problematic search engine outfit Yahoo.

According to Reuters AOL CEO Tim Armstrong has been meeting with top shareholders in the past couple of weeks to push the idea of a sale to Yahoo. He thinks that the deal could save his outfit more than $1.5 billion and give Yahoo a pretty good new direction to move towards.

Of course, Yahoo has many problems of its own, so writing a cheque to AOL would not be high on its list of things to do. But Armstrong said a merger between AOL and Yahoo could wring out $1 billion to $1.5 billion in savings from overlapping data centers and duplicate news sites, such as sports, entertainment and finance.

The deal would also appease ad agencies looking for more efficient buys with a bigger audience. But it could also arrange a deal with Microsoft. AOL, Vole and Yahoo have worked before on an advertising partnership to go up against Google.


Nick Farell

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