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AOL Considers Breakup, Merger with Yahoo

AOL Considers Breakup, Merger with Yahoo

Write: Aphra [2011-05-20]

It is reported that AOL is considering splintering up and then combining its content division with Yahoo.

AOL's plans are in the exploratory stage and the company has confirmed that it has not approached Yahoo.

AOL would sell its sinking dial-up business to another Internet service provider while the display advertising business would have been merged into Yahoo.

Yahoo expects to generate $1.64 billion in earnings before interest and tax this year. Analysts believe it could support AOL's display ad business and give AOL the confidence to shed the dial-up division.

Time Warner bought AOL in 2000 for 162 billion US dollars, only to sell it off nine years later and now, AOL's market cap is 2.7 billion US dollars.