Yahoo and AOL suddenly close to merging?

Yahoo's done its best to fend off Microsoft's aggressive advances until now, but it suddenly looks like the struggling company might be getting some help -- both the Wall Street Journal and Reuters are reporting that the Yahoo is "closing in" on a deal to merge with Time Warner's AOL division and partner up with Google on search advertising. Yeah, that's pretty major, and it would probably do something about those declining shares Microsoft's been making noise about. The idea is for Time Warner to sell AOL to Yahoo and make a large investment in the new company, which would probably be valued at around $10B. There's apparently a lot of work left to do on the deal, and it would still have to be approved by Yahoo and Time Warner shareholders, but it looks like Yahoo is no longer stuck taking Ballmer and Co. to the dance.

[Disclosure: Look up to the right. See that? Yeah, Engadget is owned by AOL -- but trust us, we have no idea what's going on.]

Read - WSJ article
Read - Reuters article

[Rollins @ Apr 9th 2008 10:51PM]

Engadhoo!

[Sora267 @ Apr 9th 2008 11:02PM]

Hoogadget? Yagadget. Engagya!
I prefer the first.

[Mark @ Apr 9th 2008 11:50PM]

wtf .. AOL? did I just hit a warp back to 10 years ago?

[DefPo3t @ Apr 9th 2008 11:56PM]

Separately, The New York Times reported that Microsoft and Rupert Murdoch's News Corp are in negotiations on making a joint bid for Yahoo. That merger would join Yahoo, Microsoft Corp's MSN and News Corp's MySpace, the paper said.


.....Micfospace....

[Blackstar @ Apr 10th 2008 7:49AM]

I have to say, that's the best picture since the satellite Alien. Only thing missing is the Barry White music.

[Newman @ Apr 10th 2008 3:38PM]

I think that picture's the closest thing we've got to Rule 34 of competing IM client logos. That is, until I invoke Rule 35... which I just did...

God help us all.

[LMM @ Apr 9th 2008 10:52PM]

Look, I hate the way Micro$oft runs it's business just as much as the next guy, but AOL is just....I mean come on! What are the Execs at Yahoo thinking?! AOL SUCKS!

[Dan Z @ Apr 9th 2008 11:00PM]

Thats what happends when you hate Microsoft with a passion and run a corporation.

[Martin @ Apr 9th 2008 11:10PM]

I agree! What are they smoking over there at Yahoo?

[Sylvanus @ Apr 9th 2008 11:23PM]

they are smokin those good old Stanford vibes...booo M$ haha

[Zorque @ Apr 9th 2008 11:30PM]

Yeah, MIKKKRO$O(swastika)(burning cross) sucks, bro. Try to rage against the machine a little more, it's awesome.

[schmitty338 @ Apr 9th 2008 11:35PM]

@Martin

...my guess is beluga caviar wrapped in a 1000-British pound note (USD aren't worth enough) and sealed with the egg-whites of endangered condors.

[david @ Apr 10th 2008 1:15AM]

Hate AOL? Hate Endadget too? You know AOL owns this site right? Probably not since you think AOL Sucks.

[Kamokazi @ Apr 10th 2008 1:32AM]

Just what I was thinking...ANYTHING is better than AOL.

[Jagster @ Apr 10th 2008 2:03AM]

aaannnnddd..... Yahoo stock goes down to $9 per share... way to go Yang.

Pre MSFT offer: $19/share
Post MSFT offer: $29/share
Post AOL merger: $9/share

Watching Yangs childish ego and desperation: priceless.

[Kiwi616 @ Apr 9th 2008 10:53PM]

Makes sense that TW will pawn of the bad sheep on someone else.

[ryan @ Apr 9th 2008 10:54PM]

NOOOOOOOOOO I despise AOL and their evil discs they used to hand out with a new version on an almost daily basis if not for AIM I wouldnt mind them disappearing forever

[Raheem @ Apr 9th 2008 10:56PM]

And of course, Engadget?

[Rafer @ Apr 9th 2008 11:00PM]

I just use the discs to practice my Ultimate throws.

[Aguiluz @ Apr 9th 2008 11:05PM]

I flush the discs down the potty.

[tim @ Apr 9th 2008 11:37PM]

i would like to see the company that makes up all these wonderful blogs split from aol.. I have the same feelings about them, the only reason and only thing involving aol on my computer is aim, and even then i'm using trillian!

[AJ in the East Bay @ Apr 9th 2008 11:32PM]

Aw, come on. The discs are yesterday's news and AOL is not the old evil AOL anymore. I favor this merger more than Microsoft's.

[Seth @ Apr 9th 2008 11:41PM]

I used the discs for fuel for my fire during the Winter time.

[crow610 @ Apr 10th 2008 2:00AM]

well, the CDs sucks buy you can't complain about free floppies

[BatteryAcid @ Apr 10th 2008 9:06PM]

I like the cases that came with the discs. The disks were also great for releasing my anger onto with a key.

[ryan @ Apr 9th 2008 10:59PM]

oh ha I forgot I couldn't live without engadget and TUAW

[John Johnson @ Apr 9th 2008 11:00PM]

Can't WAIT to see the crazy IE toolbars that'll come out of this.

[John Johnson @ Apr 9th 2008 11:00PM]

And by "see" I mean "uninstall from all of my relatives computers"

[Raheem @ Apr 9th 2008 11:09PM]

Seriously, what is with that? Why does everyone have all these ridiculous toolbars littered across their web browser? Are they really that lazy that during an installation of GrannyLovesYourCock.exe, the go ahead and leave the [ ] box checked?

[Ian Jerome @ Apr 9th 2008 11:01PM]

Anyone besides Microsoft is fine with me

[Brad @ Apr 10th 2008 8:52PM]

Why? How does it hurt you as a consumer for Microsoft (a fiscally healthy and well-managed company) to absorb Yahoo (a useful but financially floundering company). Are you worried they'll can your favorite newsfeed? If there's one thing we've seen from Microsoft's purchases of late, they've gotten past the "gut for technology and discard" mentality. At this point they purchase people and users - both of which would go away if they made significant changes to the Yahoo platform. No, they'll probably just take over the advertising portion and cut a lot of internal waste out. I doubt you as the user will notice all that much different.

Unless you're one of those kids that has the irrational hate of Microsoft because you heard from the older, cooler kids that Microsoft was "evil" back in the early-to-mid 90s. At this point they're to big to be generally evil, it'd be costly and hurt the stock price too much.

[Peter @ Apr 9th 2008 11:01PM]

now they are going to suck even more!

[Martin @ Apr 9th 2008 11:04PM]

Is Yahoo is a good position to spend 10 billion on a company that doesnt have a bright outlook? AOL is backing out of the ISP market. AIM isnt what it used to be. Netscape is gone now. AOL has only its ads to fall back on. "Revenue at AOL was down 33 percent for 2007 and 32 percent for the fourth quarter. " If Yahoo buys AOL then I can see why Yahoo is going in the hole!

http://blogs.zdnet.com/BTL/?p=7899

[Sora267 @ Apr 9th 2008 11:04PM]

So if AOL is sold to Yahoo...And if Microsoft still wants Yahoo, and they managed to buy it....Microsoft would own AOL. Which means they'd own Engadget. Heh, I wonder what they'd do with TUAW?

[Zorque @ Apr 9th 2008 11:31PM]

AOL is buying Yahoo, Time Warner definitely has the scratch. Yahoo probably doesn't have enough to buy NetZero at this point.

[Rollins @ Apr 9th 2008 11:09PM]

I can guarantee you that the comment system would never, ever be fixed.

[Martin @ Apr 9th 2008 11:17PM]

We might get a few less iPhone stories here on Engadget. That would be a welcome change.

[Zorque @ Apr 9th 2008 11:32PM]

Whoops, I read that wrong and it sent my reply to the wrong person. Awesome, I'll leave now.

[fischju @ Apr 9th 2008 11:36PM]

Where is ATT/SBC in all of this? I had SBC DSL, then it changed to SBC yahoo, now it is ATT.......I DON'T WANT AOL DSL!!!

[Rob @ Apr 9th 2008 11:09PM]

The Time Warner stock lost a lot of its value thanks to the merger with AOL. Now, they're going after Yahoo. AOL is like cancer. If this merger goes through, I can foresee Yahoo's stock in the teens in a few months.

[Adrenaline @ Apr 9th 2008 11:12PM]

I'm sure that skullphone would save the day should this scenario come to pass.

[9bit @ Apr 9th 2008 11:13PM]

@Rollins
It couldn't be much worse than it is now.

[Rollins @ Apr 9th 2008 11:32PM]

@9bit

Oh, the irony.

[Montusama @ Apr 9th 2008 11:13PM]

YOL = Yahoo Online....and where the hell did this come up?

P.S. I'd buy Yahoo in a second if they would sell themselves for *checks bank account* 48.76USD and maybe with a small loan...

[peyay @ Apr 9th 2008 11:16PM]

this "merger" would problably get approved in the following days after they agree tto merge unlike the sirius xm deal eventhough this would be more or a monopoly than the sirius deal

[Zorque @ Apr 10th 2008 2:16AM]

I dunno, there are more than two search engines, but there really are no other viable satellite radio companies.

[IndiaTech @ Apr 9th 2008 11:20PM]

Yahoo! is just acting like a typical girlfriend. You know, the part where they start dating random guys from the office to make their boyfriends jealous. The BF rolls over in no time.
I see Steve "Wild A$$" Balmer jacking up the offer by couple of dollars per share just to make Yahoo! happy.

[Sylvanus @ Apr 9th 2008 11:26PM]

sounds like Yahoo! could catch a disease dating all these random guys before getting with MS.

[Darkest Daze @ Apr 10th 2008 1:32AM]

Bankruptcy is a disease now?

[hypereric @ Apr 10th 2008 8:51AM]

Whoa there, now. I hold the copyright and trademark to use "Steve 'Wild @SS' Ballmer" here on Engdaget. Sure, you changed it to "Wild A$$", but I maintain you are still infringing on my rights.

Where's Nilay Patel?