Can AOL purchase out Yahoo?

Yahoo Inc., is a business with a huge number of potential suitors. AOL has started discussions that might involve purchasing Yahoo. The purchase of Yahoo might be funded by various private equity firms. This means AOL would only own a controlling stake, not the whole company. Article source – AOL may soon make a Yahoo buyout offer by Personal Money Store.

Yahoo and AOL together?

AOL is an Internet and media business that began life as The United States Online. Yahoo is the very same thing. It’s an internet and media company as well. You will find only a couple things Yahoo really makes money on. Search and advertising are those things. AOL and Yahoo have discussed merging once before, in 2008. Against Google, neither business is doing well right now. If they were to unite, they might be able to stand a chance. The visitor interaction and time on site have gone down although lots of visitors still go to each site.

How AOL would purchase Yahoo

AOL could buy Yahoo out in different ways. Yahoo has a long-standing partnership with Goldman Sachs. In 2008, Microsoft tried to buyout Yahoo, but eventually withdrew their bid. The purchase of Yahoo is something AOL has been discussing with numerous private equity firms. The Blackstone group is in consideration for funding the AOL-Yahoo partnership. Silver Lake Partners is being considered also. The control of the relationship would be maintained by the partners more than likely.

AOL Yahoo

AOL and Yahoo are both corporations that are familiar with mergers and spin-offs. In 2009, AOL had been able to be spun off of Time Warner Cable. It had merged just a few years before that. Yahoo and Microsoft have worked on the Bing search motor together this year. The deal hasn't been set in stone yet. There aren't details on how the merger would work yet. The whole thing is going to result in being Google vs. a mega company involving Bing, Yahoo and AOL more than likely.

Info from

Wall Street Journal

online.wsj.com/article/SB10001424052748703673604575550661101743360.html#ixzz14jFQMzBr