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Further Speculation On AOL-Yahoo Rumors And Other Useless Endeavors

Rumors of an AOL/Yahoo tie-up have recently quieted, but that doesn't mean a deal of immense proportions isn't on the way. Citing sources, Reuters reports that AOL is "actively exploring" a Yahoo merger, which would first require a broad company restructuring. Yahoo, according to sources, isn't even aware of AOL's plans.

"In many respects," Reuters explains, "the latest discussions are derivative of plans contemplated in 2008 and 2009 before Time Warner spun off AOL to Time Warner shareholders." At the time, in essence, AOL's display ad business would have been merged with Yahoo's.



Still, this latest report is already being written-off by the likes of AllThingsD star reporter Kara Swisher, who tweeted that it was "a figment of bankers' imagination," adding: "My sources at yahoo/aol said nothing new up."



"Both a breakup and a Yahoo merger have been speculated for so long that the likelihood of both happening seems particularly out in left field," writes CNet.



Indeed, "The deal is reportedly maddeningly complicated and involves a number of potential suitors for the dial-up segment of AOL's business," adds VentureBeat. "So, as always, take this one with a grain of salt."



Any break-up strategy on AOL's part would require buyers, Though, as AOL showed with its failed social network Bebo.com, the company isn't above taking huge losses.

If -- and that's a big "if" -- AOL can streamline its business offerings, some analysts believe that it could fit well with Yahoo's display ad business.

"Combining Yahoo and AOL's web properties makes strategic sense," reports Reuters, citing comments from Todd Rethemeier, analyst at Hudson Square Research. "Yahoo's home page attracts audience to its sports, finance, general news and email, while AOL, has strengths in maps, and entertainment news, Rethemeier said."

For better or worse, "Both Yahoo and AOL are focused primarily on display advertising with content creation driving page views," notes Search Engine Lands' Greg Sterling. As a result, "There's a lot of similarity and a lot of overlap."

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