Yahoo's Bartz ouster ignites new AOL merger possibilities

With Carol Bartz now out of Yahoo!'s (Nasdaq: YHOO) picture, AOL's (NYSE: AOL) CEO Tim Armstrong is revisiting his idea to merge the two Internet providers, according to two people with the matter in a Bloomberg article.

One person said that Armstrong has been talking with private equity firms and investment banker from Allen & Co.

Armstrong previously presented the merger idea to Bartz, who dismissed it, but her departure drove Armstrong to reconsider merging with Yahoo!. In one scenario he is considering, Yahoo! would acquire AOL and Armstrong would become the combined company's CEO.

Given the service provider's ongoing financial losses, it's not likely that Yahoo! would want to consider merging with AOL. AOL's market value is about $1.6 billion, while Yahoo's is about $18.2 billion.

Neither company would comment on any potential deal.

For more:
- Bloomberg has this article

Related articles:
AOL TV back in play as part of i.TV partnership
AOL's new chief cleans out the management house
AOL to begin involuntary job cuts
Stock plunges as AOL continues to struggle in Q2

Suggested Articles

Cisco CEO Chuck Robbins told a Goldman Sachs tech conference audience that customers are "just tapping the brakes" on spending.

Besides 5G, there are plenty of other network developments (and vendors) worth our attention.

A judge issued a preliminary injunction to temporarily block Microsoft from working on the $10 billion JEDI contract after Amazon filed a protest.