AOL-Yahoo to Merge in 2007?

This article was written on December 27, 2006 by CyberNet.

No, they haven’t merged….. yet. But, an AOL-Yahoo merge is rumored, looks rather attractive, and one source says that 2007 is the year for this. Another source agrees, but offers an additional possibility of AOL and Yahoo to be acquired by another company such as Microsoft. With Time Warner considering the option of selling AOL, who knows what will happen with the future of AOL.

This information comes from a Merrill Lynch analyst report in which they speculate that both AOL and Yahoo are geared up for “a transformative transaction in the coming 12 to 24 months.” It’s imminent that a change for both is near, as these rumors have been around for months. Fortune magazine mentioned this rumor back in October describing a Yahoo merge with AOL as a way to impress Wall Street, and yank some of the spotlight away from one of their biggest rivals, Google. This came after Google bought YouTube and spent some time shining in the spotlight after they forked out $1.65 billion for the online video giant.

Ars Technica suggests that both companies are facing investors that are doubtful, and with overlapping technology, a merger would mean more profit. So while all of this is a possibility, and makes sense, none of it is certain. Of course, besides Yahoo, there are other well known names that fit into the equation well for a possible merger with AOL, such as News Corp., or even Google. Although, those names always seem to come up with any rumored merger or acquisition.

So for now, my merger watchlist for 2007 includes AOL… with other additions T.B.A.

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