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Seems unlikely for lots of reasons (including the personalities involved), but Bloomberg reports that AOL CEO Tim Armstrong has approached Yahoo advisers about possibly combining the two companies. He expressed interest in a deal last year when Carol Bartz had been running Yahoo, but was rebuffed. Now Bartz is gone, and so Armstrong might see an opening.
Her departure prompted him to reconsider the option, and, under one scenario now being considered, Yahoo would acquire AOL and Armstrong would become CEO of the combined company, the person said. Yahoo is unlikely to be interested in a deal for AOL at this time given the company's losses and declining revenue, according to one person familiar with the matter. AOL's market value is about $1.6 billion, while Yahoo's is about $18.2 billion.
*CNBC, citing a source, says Yahoo has no interest in a deal with AOL.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.