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AOL Sale Could Happen In Two Weeks
By Daya Baran at July 16, 2008 0 Comments
Reuters is reporting that AOL’s parent TimeWarner is seeking to sell the property to either Yahoo or Microsoft. The discussions between the companies “have taken on new urgency ahead of Yahoo’s Aug 1 shareholders meeting.”
Discussions with Time Warner have accelerated as both Yahoo and Microsoft view AOL as beneficial to leverage their positions in online advertising. Over the past two years AOL focused on turning itself into a one-stop online advertising outfit.
Microsoft’s interest in acquiring AOL would serve to bulk up its display advertising business as well as gain more traffic to weaken Yahoo’s and Google’s position. The software company also needs to convince shareholders it has an Internet strategy independent of its so far unsuccessful pursuit of a Yahoo takeover.
Time Warner is planning to divest AOL and focus its business on content, not distribution. We think it is a bad idea. This how Yahoo lost its way.
Labels: AOL, Microsoft, Online Advertising, Search, Yahoo
