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Sep 22 2008

Yahoo: Will Yahoo consider buying AOL?

Sardar Mohkim Khan 

image308 Yahoo: Will Yahoo consider buying AOL?With Yahoo’s board loaded with new members set to meet one wonders what exactly will the discussion be about? Of course the primary concern would be the failing stocks and then the past wounds of Yang and Yahoo killing the Microsoft deal resurfacing would snatch the limelight. But let’s be a bit optimistic and think of the board pulling their act together and focusing on coming up with ideas to bring Yahoo back on track.

One thing that’s surely to get some mention would be how to take forward the Yahoo/Google deal; one that is suffering greatly at the hands of lawmakers who consider it bad for competition and the other would be Yahoo’s plans to acquire AOL. There has been quite a lot of interest shown by officials at Yahoo, who look forward to turn this into reality. The price Time Warner has put for AOL’s sell off is $10 billion, something that Yahoo would be cutting much short, but that remains to be seen.

The deal with AOL would give Yahoo a huge boost; with the email and messaging services getting the larger chunk  but is that what Yahoo is actually looking forward to? I guess Yahoo is keen at getting AOL’s much experienced executives and with the deal Yahoo gets Google too. How? Google has a 5% share in AOL’s ownership and a search partnership, this will in turn provide more stability to Yahoo. So is Microsoft in sight as well? I guess what Yahoo is actually planning at is to improve its falling position and once it gets back there, it will be attractive for Microsoft; who is desperate to rise in ranks and numbers against its worst enemy Google.

What ever the case maybe, it’s all upon Yang and the rest of the leadership to work out plans that not only sound good to the ears but  squeeze out results to satisfy investors and employees alike. The deal with AOL, is bound to give Yahoo much more than they would anticipate, even higher chances of reconsidering its partnership with Microsoft.

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