I read this interesting article on Fortune about how one source claims that Yahoo! is talking to Time Warner about acquiring America Online from them and another source that says that Yahoo! is not talking with them at all.  Fortune reported that if these talks were actually taking place, then it would be a “face-saver” for Yahoo! CEO Terry Semel since Yahoo! competitor, Google has been making some big moves lately, including plugging in $1 billion into AOL and becoming the exclusive search provider for them.

Fortune reported that if a Yahoo!-AOL deal does not take place, then there are several other options in order to push things forward for the #1 search engine such as acquiring Facebook for $1 billion.  One other possibility that Fortune reported that surprised me was putting themselves up for sale.  Comparatively speaking, Microsoft’s market cap is close to $283 billion, Google is close to $145 billion, and Yahoo! is $35 billion.

Fortune reported that the likeliest moves that Yahoo! will make is to Buy AOL, Sell to Microsoft, Merge with eBay, or Stay the Course.  The fact that Yahoo! is expected to make such moves is definetely interesting.