New York – Rumors continued to swirl on Wednesday about the
possibility of a mega-merger between AOL (NYSE:  AOL) and Yahoo (NASD:  YHOO). Citing a "plugged-in
source," Silicon Alley Insider reported that private equity firms are
exploring the idea of uniting the assets of both companies, then taking the
resulting entity private.

"A lot of chatter out there that possibly this
could come to fruition," Jay Heller of the Nasdaq Market Intelligence
Desk, told The

"These are just rumors, but I think the most important
thing is, if something like this were to happen, what you’d see is a dramatic
savings on the costs. You’re having two companies essentially doing the same
thing, running side by side [and] not making any headwind."

According to
the source, AOL’s Tim Armstrong would be in line to lead the combined company.



Related Links:
(Business Insider)