It would appear that the so-called "urgent" AOL acquisition talks with Microsoft and Yahoo reported yesterday by Reuters were precipitated by people close to the Time Warner company, as
The New
York Times is today reporting that neither Microsoft nor Yahoo appears much interested in the once-mighty Web portal. Indeed, the
Times claims that while both companies are listening to
Time Warner, they seem to be more focused at the moment on their talks with each other, which have gone back and forth now for more than five months.
Richard Greenfield, an analyst who
covers Time Warner for Pali Capital, says that any deal involving AOL is unlikely before Yahoo's crucial Aug. 1 shareholder meeting, during which company shareholders will be asked to vote on a slate
of new directors proposed by billionaire investor Carl Icahn, who would like to replace Yahoo management and then sell all or part of the company to Microsoft.
"I don't see why anyone
would make a move now with all the pieces on the chess board where they are," Greenfield said, adding that Time Warner was in an especially tough spot given that the value of AOL is declining every
day-hence the "urgency" reported by Reuters yesterday. Time Warner sees the Yahoo unrest as a potential opportunity to quickly offload a depreciating asset. Greenfield tells the
Times that not
only is AOL's display ad business under pressure, but due to the brand's "toxic" connotation with consumers, the company no longer uses the AOL name when it starts new Web sites.
Read the whole story at The New York Times »