The Yahoo AOL Teamup?
Hollywood Newsroom is now Buzz Newsroom! Visit and bookmark our new site. Buzz is bigger and better, including sports, world news, gadgets and the entertainment news that you're used to. Same staff, just more stuff! Why Fark, Drudge and Huffington when you can Buzz!?Yahoo! Inc., fending off Microsoft Corp.’s $44.6 billion acquisition offer, is close to striking an agreement to combine operations with Time Warner Inc.’s AOL unit, a person familiar with the situation said.
Yahoo would gain control of AOL and give Time Warner a 20 percent stake in the combined entity, said the person, who asked not to be identified because the talks aren’t public. The cash from Time Warner would enable Yahoo to buy back billions of dollars of its own stock under the plan, the person said.
As part of its effort to thwart Microsoft’s $31-a-share offer, Yahoo said today it is testing Google Inc.’s advertising technology on a limited number of search results. Yahoo rejected Microsoft’s bid in February, saying it was too low. Last week, Microsoft threatened a proxy fight to take control of Yahoo’s board.
“They’re delay tactics,” Laura Martin, an analyst at New York-based Soleil Securities Corp., said of Yahoo’s actions. She rates Yahoo shares “hold.” “They’re just going to irritate Microsoft and accelerate a proxy fight.”
Via Bloomberg