AOL and Yahoo 'look again' at merger idea after the sacking of Bartz
Things move at the speed of light on the Internet! Could these two struggling giants make a deal?
Armstrong is said to be discussing options for a combination aimed at strengthening the two Internet companies.
He has talked with private equity firms and investment bankers from Allen & Co. working with Yahoo, one person said.
Armstrong was interested in a merger with Yahoo last year, said Business Week, but was rebuffed while Bartz was in charge. Her departure prompted him to reconsider the option.
One possible scenario: Yahoo would acquire AOL and Armstrong would become CEO of the combined company, the person said.
However, other insiders thought Yahoo was unlikely to be interested in a deal for AOL at this time "given the company’s losses and declining revenue," said Business Week ,quoting one person familiar with the matter.
AOL’s market value is about $1.6 billion, while Yahoo’s is ten times as much at about $18.2 billion.
AOL and Yahoo, declined to comment.
Both companies have been up against it as Internet companies such as Google . and Facebook have surged. AOL has lost almost $800 million since it was spun off from Time Warner in 2009.
Yahoo - still the most-visited U.S. Web portal, - fired Bartz on Sept. 6, after less than three years as CEO. Once worth $80 billion, Yahoo has fallen more than 80 percent as it lost users and advertising revenue to Google and Facebook.