According to the Wall Street Journal, AOL and several private-equity firms are considering to buy Yahoo.
“Silver Lake Partners and Blackstone Group LP are among the firms that have expressed interest in teaming up with AOL to buy Yahoo or trying to take it private on their own,” the Wall Street Journal reported.
Both AOL and Yahoo are facing an uphill battle to maintain their momentum as online giants and the merger could be beneficial for both.
The marriage between AOL and Yahoo is highly rational. A combined AOL and Yahoo effort would provide a larger scale in online advertising, both in search and prominent blogs like TechCrunch (recently acquired by AOL).
The stock market reacted favorably with this piece of news. Yahoo’s share jumped by 13% on the Nasdaq Stock Market.
When questioned about the deal, both Yahoo and AOL declined to comment.
Take the news with a pinch salt. The merger is still at its preliminary stage and might not materialized given the complexities in structuring a proposal. If it were to happen, I wonder how would Google react. Is this merger even a threat to the search giant? Let us know your thoughts below.
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