As Gawker puts it, "It
would be a deal of unprecedented irrelevance." Merged or not, "It's not clear how Yahoo, the has-been portal, and AOL, the has-been dial-up service, can ever hope to vanquish Google."
Silver Lake Partners and Blackstone are among those private-equity firms eying Yahoo, which they could go after alone or with AOL, The Journal reports.
According to another
rumor, AOL Chief Executive Tim Armstrong is open to the idea of being acquired by Yahoo, while yet another rumor suggests that the private-equity firms could partner with another set of unnamed media
companies to buy Yahoo.
Smacking down on all the rumors, The New York Times insists: "A deal is
not happening anytime soon." As The Times sees it (perhaps a bit resentful that it didn't break the news), "The trial balloon in the media is coming from a handful of bankers and investors who have
tried to gin up interest in a deal for months. And at least a few of the named 'suitors' in The Journal's story, like the Blackstone Group, have already passed on the idea."
"Make no mistake -- there are no definitive offers on the table to do a variety of takeover deals of Yahoo by either private equity moneybags or from big media giants such as News Corp. or smaller Web
firms such as AOL," hedges BoomTown's Kara Swisher. "But that does not mean that major
players are not circling Yahoo and assessing the situation aggressively."
Back to the main rumor, "A combined Yahoo-AOL would have greater scale to compete in online
advertising against industry juggernaut Google," notes The Journal.
Indeed, "The news comes as Yahoo ... struggles to revive its revenue growth under the management of Chief Executive
Carol Bartz, and to rebuild its buzz among consumers amid competition from social networking sites such as Facebook," reports Reuters. Likewise, "AOL is keen on gaining scale and snagging content to re-kindle growth."
AOL buys Yahoo and kills it (they have a rich history with this), Google buys Facebook and adds it to their YouTube property stable (and rules the web), Microsoft goes back to making operating systems and Apple continues to develop their feminine hygiene product line (that they started with iPad). Perfect world.