New York — Looking to more seriously explore a possible tie-up with
rival Yahoo, AOL has hired financial advisors to further probe into a
potential transaction, The Wall Street Journal reported on Monday.
Though internally discussing a possible merger with Yahoo in recent
weeks, AOL has yet to offer a formal proposal, people familiar with
the matter told the paper. The advisors reportedly have been
evaluating various scenarios about how such a deal would work, given
Yahoo’s significantly larger size. One of those scenarios could be a
spin-off of Yahoo’s Asian operations, followed by a combination of the
two companies’ online businesses. Another possibility, the Journal
reported, could be a scenario in which private equity firms acquire a
stake in the combined operations. AOL, however, is said to also be
considering other options not involving Yahoo at all.