AOL, Yahoo Mulling Merger
Mike Zahalan writes with an update to last month's news that AOL and various private equity firms were exploring the possiblity of buying Yahoo. While talks between the companies have not officially gone much deeper, AOL has now hired financial advisers to analyze their options. Still, Kara Swisher writes at All Things Digital that the complexity of a deal between the two companies will be the biggest obstacle they have to overcome.
"Among the issues being grappled with: Onerous tax implications around a variety of deals; a need for complete cooperation from too many players; and the realization that a hookup of AOL and Yahoo might cause more problems than it solves. 'It looks great conceptually and everyone gets all hot and bothered,' said one prominent investor who did his own strategizing about Yahoo and AOL. 'But when you actually do the numbers, you hit a pretty big wall of impossible.'"
Because 0+0=1!
The world's burning. Moped Jesus spotted on I50. Details at 11.
if you burn the money instead, it keeps you warm. if you buy Yahoo, you gain nothing.
if this is supposed to be a new economy, how come they still want my old fashioned money?
We'll call it Yaol (pronounced yowl) and call it a day because that's what the reaction will sound like.
AOL is still around outside of AIM? And they have enough money to buy another company?
The world is how you make it
I recall an IT industry commentator comparing on the hp-Compaq merger as two garbage trucks colliding. I thought that was a reasonably accurate analogy.
But these two companies are kind of...worse. Maybe two honeywagons colliding? It'll take a while to get all that stink mopped-up!
Nope... it'll be named "yaHOL", and sound much like the yelling Governor Schwarzenegger makes the day after eating Habanero Peppers...
Or perhaps its the sound of the black HOL formed when two infinitely dense, dying corporate stars accrete and collapse under the weight of their own ineptitude. This may well be the perfect opportunity to measure irony waves or maybe even determine the speed of stupid in a corporate vacuum.
Two dead bodies sewn together make a Frankenstein...
So, is AOL's actual plan to just keep buying other companies who haven't been relevant since the late 90s, until such time as the massive collection of 90s nostalgia somehow changes, alchemically, into something worthwhile?