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Yahoo and AOL suddenly close to merging?

Nilay Patel

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

Engadget’s parent company, Verizon, now owns Yahoo. Engadget remains editorially independent.

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