Yahoo! may restart talks with AOL
Yahoo! seeks to restart merger talks with Time Warner-owned AOL to defend itself against Microsoft's $44.6bn takeover bid.Updated: Feb 11, 2008 18:29 IST
Leading Internet firm Yahoo! Is seeking to restart merger talks with Time Warner-owned AOL to defend itself against the 44.6-billion-dollar takeover bid by Microsoft, British media said on Monday.
According to The Times, one option being explored by Yahoo! is to restart merger talks with AOL to fend off Microsoft from taking over the firm.
"It is also understood that one option being explored is to restart merger talks with AOL, the online business owned by Time Warner. Tie-ups with groups such as Google or Disney are also being considered," the newspaper said.
Although Yahoo! and AOL previously failed to join forces because of differences over price, it is hoped that the urgency created by an unwelcome approach from Microsoft and an impending economic downturn will spur the two into new talks," report said.
World's largest software maker Microsoft had made an unsolicited 44.6 billion dollar takeover bid to Yahoo! in cash and stock earlier this month. Microsoft is pursuing the internet firm to compete with world's popular search engine Google in the online search advertising market.
Interestingly, Google has a five per cent stake in AOL. According to the report, it is understood that Yahoo! and its team of advisers from Goldman Sachs and Lehman Brothers, the US investment banks, have spent the past week evaluating possible tie-ups with media and technology firms that would save it from being swallowed by Microsoft.