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Yahoo AOL Flirt is Tempting Asian Dragons

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Wall Street Journal insists that Yahoo (YHOO) is still looking to merge with AOL (AOL). Advisers have been hired. Strategic options that everyone is painfully aware of are being , whats the word they use, reviewed. AOL was ejected by Time Warner (TWX).  AOL needs to do something dramatic to get into a sustainable life boat.

Yahoo, which cannot forget a major error in judgement when they refused Microsoft (MSFT), has some interesting assets namely Alibaba (HK:1688) and Yahoo Japan (TYO:4689). The remaining assets are mildly interesting. Watch for the Asian Dragons to make a bid for Yahoo. Perhaps even a reverse takeover from Alibaba. The Asian positions have the most promise. The Asian Dragons have readily available cash.

AOL cannot afford to get into a bidding war.

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.

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