Yahoo picks AOL over Microsoft

Yahoo picks AOL over Microsoft

Yahoo!Yahoo News is reporting that Yahoo & Time Warner are getting close to doing a deal leaving Microsoft behind. This is far from confirmed but an interesting development in this ongoing story. From the Yahoo! News article:

“The source confirmed a Wall Street Journal story saying Yahoo would receive a cash investment from Time Warner in exchange for a 20 percent stake in the combined Yahoo-AOL business. The deal would exclude AOL’s fading dial-up Internet access business and value AOL at about $10 billion.

A deal with Time Warner and AOL would be part of a multi-pronged strategy by Yahoo in which it would outsource Web search advertising operations to Google Inc (GOOG.O), the source said.”

Many readers will prefer anything above Microsoft when it comes to Yahoo and an acquisition but I’m not sure I actually like the prospect of an AOL/Yahoo merger. Once a market leader, AOL is now known more for its lack of innovation and strategic mistakes when it comes to predicting the future of the web.

AOL has the appearance of a sleeping giant.
At least Microsoft is aggressive…

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