Yahoo Stock Soars Amid AOL Merger Talks

Yahoo Stock Soars Amid AOL Merger Talks

Yahoo Stock Soars Amid AOL Merger Talks

On Wednesday Yahoo’s stock price rose by 13% after news that AOL was holding talks with a number of private equity firms to purchase the company.

According to a report in The Wall Street Journal, a number of firms have approached AOL about a possible buyout of Yahoo.  Silver Lake Partners and Blackstone were two of the firms specifically mentioned in the report.

The report states that the firms are interested in teaming with AOL in a possible takeover or buying Yahoo outright and making it private.  It is believed that at least two other firms would join the deal if discussions continue.  However, no deal is imminent and the talks could end at any time.

AOL has been the subject of rumors for weeks.  Some of the rumors had them buying Yahoo, while other rumors had Yahoo buying AOL.  If the two Internet companies were to merge, either in a takeover or as a partnership, it is widely speculated that former Google advertising executive and current AOL point man Tim Armstrong would assume control of the combined company.  Armstrong has vowed to turn AOL into the world’s top Internet content company since taking over.

In 2008, Yahoo was able to hold off a takeover by Microsoft, which ultimately led to the two collaborating on search engine technology.  AOL is currently a partner of Google’s search engine technology.  If AOL and Yahoo were to combine, it is not known what would happen with the current partnerships.

AOL has engaged in a campaign to turn the company around after a disastrous merger with Time Warner ended in 2009.

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