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.
- AOL, Yahoo Merger Talk Intensifies (informationweek.com)
- AOL hires advisers for options as it eyes Yahoo: report (reuters.com)
- AOL hires advisors for options, eyes Yahoo: Report (financialpost.com)
- Silicon Alley Insider: Tim Armstrong Called Carol Bartz To Talk About All The Yahoo-AOL Speculation (AOL, YHOO) (businessinsider.com)
- AOL Said to Hire Advisers, With Yahoo in View (dealbook.blogs.nytimes.com)
- AOL hires financial adviser: report (theglobeandmail.com)
- Report: AOL hires financial adviser (seattletimes.nwsource.com)
- Report: AOL hires financial adviser (sfgate.com)