Yahoo! and AOL Are In Merger Due Diligence Stage

Posted Oct 29, 2008

Yahoo! Inc. (NASDAQ:YHOO) and Time Warner Inc. (NYSE:TWX) subsidiary AOL are currently in the due diligence stages for what could happen as a merger.  Both companies are finding out how much in costs they can save and how much money they can make together.

The talks are focused on how to merge AOL’s content and advertising business into Yahoo!  The AOL and Yahoo! merger talks were one of the possible alternatives to being acquired by Microsoft.  These discussions are taking place as Yahoo!’s advertising outsourcing deal with Google Inc. (NASDAQ:GOOG) is going through the regulatory process.

If the merger deal goes through, Time Warner would get stake in the combined company.  AOL and Yahoo! are being very cautious with the move because the deal carries “a lot of risk.”  Yahoo! would also gain control of AOL’s many assets.

AOL owns companies like Netscape, Moviefone,, Nullsoft,, MapQuest,, Weblogs Inc., Truveo, MusicNow,  Userplane, GameDaily, Relegence, Third Screen Media, AdTech, Tacoda, Quigo,, Bebo, and Sphere.