Andre Yoskowitz
10 Sep 2011 16:14
Bloomberg has reported that AOL CEO Tim Armstrong has been talking to Yahoo! advisers to gauge any interest in a merger of the two struggling companies.
Over the past few months, AOL has been speaking to private equity firms in an effort to go private while they complete their turnaround efforts.
Armstrong is said to have pushed a merger last year, but newly fired Yahoo! Carol Bartz had rebuffed the talks at the time.
While both companies are in similar markets, Yahoo is worth $18 billion and AOL is worth just $1.6 billion (market value) with declining revenue and losses. AOL has lost $800 million since 2009.