New York – Following weeks of rumors about a possible
combination, The Wall Street Journal reported that AOL (NYSE: AOL) and several private
equity firms, including Silver Lake Partners and Blackstone Group, are
considering making an offer to buy Yahoo (NASD: YHOO). Citing people familiar with the
matter, the paper reported that talks so far have involved AOL executives,
private equity firms and financial advisors, though not Yahoo, as of yet.
Yahoo’s market capitalization of $20.6 billion is roughly eight times larger
than AOL’s, one aspect of any such deal likely would involve Yahoo first
selling off its 40% stake in China’s Alibaba, reportedly worth around $10
One person familiar with the situation told The Journal that AOL CEO
Tim Armstrong also has talked privately about Yahoo acquiring AOL.
likely would create an entity that could compete more evenly with Google in the
market for online ads.