AOL And Private Equity Attempting To Buy Yahoo


Yahoo-AOL-logoJessica Vascellaro and Anupreeta Das of the Wall Street Journal reports AOL and a bunch of private-equity firms are discussing making a play for Yahoo, although experts said there are doubts about how workable such a deal might be.

The newspaper said that Silver Lake Partners and Blackstone Group LP are among a group of private equity firms that have expressed interest in either teaming up with AOL to buy Yahoo, or trying to take it private on their own. These new set of rumors starts building after two years of Yahoo declining a takeover bid of $33 a share from Microsoft, whereas Yahoo’s stock price has been pretty stagnant during the past year, trading at less than half what Microsoft offered in 2008.

There are another set of Rumors which says Yahoo is looking to buy AOL, as Yahoo’s market capitalization of $20.56 billion is nearly eight times greater than AOL’s $2.68 billion value. When asked to comment neither company is willing to make an official statement at this time.

All these new set of rumors are just another indication of the intense pressure on Yahoo’s present CEO Carol Bartz to improve Yahoo’s present situation in the market.

What are your opinions on this alliance between these two fading powerhouses? Can they create a more vital, competitive organization to compete with the search giant Google.


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