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Yahoo rumored to be in AOL talks


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#1 Nvyseal

Nvyseal

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Posted 10 April 2008 - 03:28 AM

images/news/yahoo.jpgJust when I thought it was safe to head for the bar comes news, courtesy of our colleagues over at the Wall Street Journal, that Yahoo and AOL are working on a deal to combine the two companies' Internet operations.

"The possible Yahoo-AOL tie-up is part of a threefold plan by Yahoo to present shareholders with an alternative to Microsoft's unsolicited offer. Yahoo would also propose repurchasing billions of dollars of its own shares and is negotiating with Google Inc. about an advertising tie-up, people familiar with the matter said."

Say this much for Yahoo CEO Jerry Yang: He's giving it the old college try--anything to make sure he doesn't wind up reporting to Steve Ballmer. Earlier in the day, Yahoo said it was testing the use of Google advertisements on some of its search pages.

The WSJ story correctly raises the possibility that this may all be a negotiating ploy to squeeze a higher price out of Microsoft. If that is the case, Microsoft isn't letting on just yet--at least not publicly.

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