Yahoo Now Thinks AOL Will Be A Savior?

from the seriously? dept

Over the weekend, reports quickly came out that Yahoo’s board had apparently decided to reject Microsoft’s takeover bid, which wasn’t too surprising, given what the company had been hinting at all week. There was plenty of talk about looking for other suitors, but one by one, the few obvious candidates all backed away. Then, late Sunday a new rumor arose: Yahoo! might try to keep Microsoft away by merging with AOL. That seems sort of like trying to keep a wild animal from eating you by covering yourself with feces. It might make awful sense for about a second, but it’s just a bad, bad idea. First, it’s unlikely to work — and, second, it’s just pathetic. As much as it seemed like Microsoft merging its web operations with Yahoo would be two also-rans pretending a merger would somehow make them into a web operation people cared about, merging with AOL would be even worse. Of course, the folks over at Google must be laughing hysterically at the possibility. Not only would an AOL/Yahoo merger appear to be less of a competitive worry than a Yahoo/Microsoft merger, Google might actually make out quite well in the deal, since it owns a piece of AOL. So, in the unlikely chance that Yahoo merges with AOL and fends off Microsoft, Google would cash out of AOL, watch Yahoo struggle to merge with AOL and see Microsoft left without a big internet partner. That has to be Google’s dream scenario.

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Companies: aol, google, microsoft, time warner, yahoo

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Comments on “Yahoo Now Thinks AOL Will Be A Savior?”

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Grizzly says:

Beautiful. Just......Beautiful!

I have always hated Ao-hell with a passion and never got fond of yahoo…but mixing the two is like….adding extra stink to a pile of feces. It’s just beautiful to see that a mediochre company making a decision to merge with a FAILING company to try to be a competitor with google. I laughed when i read this post and i hope that they DO merge. personally i hope both yahoo AND AOL die off SOON.

Chuck Norris' Enemy (deceased) says:

A sad (but necessary) parting

If Yahoo! and AOL merge I will be forced to abandon my first email account (Yahoo! 1996) that has served my spam so well all these years. I just don’t want to release my unscathed gmail address to the masses. It may be time to buck up and put my infinite faith in Google’s spam blocking.

Steve Nihan says:

Not that anyone would remember me....

I doubt anyone will rememberme, but years ago, before social networking, .net, and major hosting companies, I built a company ( from the ground up, developing everything as I went along, including web based email, hosting, chat, instant messaging, downloads, news, directory (based on dmoz), and a self submitting search engine. Then Yahoo bought up Geocities, and I lost most if not all of my business over the course of a year. I have cursed Yahoo since then, and will continue to do so until the day they close their doors.

matt says:


I love Yahoo, and I love AOL!! They made my childhood great — I could go to a coffee bar in town, log onto AOL dialup on their Mac(or Apple or whatever you call it), and go to or Much fun!!!

I don’t think I’ve used Yahoo since, except for Yahoo Finance which is a pretty informative site. I don’t think I ever used AOL, except to use the free trial, then call and complain at the end and get them to extend it… then cancel for real before ever having to pay for it.

Jay Neely (profile) says:

My second correction of a

Yay for senseless bashing with no real thought or analysis applied. I’ll re-iterate my comments from the TechCrunch post:

How an AOL merger helps Yahoo!…

1) Yahoo! maintains its position as the top site on the web. Quantcast shows that adding AOL’s visitors to Yahoo!’s puts Yahoo! at almost 200 million monthly uniques, almost 50% ahead of Google. ComScore data is less exact, since it groups AOL under “Time Warner Network”, but still shows the same trend:…

2) Yahoo! becomes the dominant player in IM. Yahoo! Messenger is already interoperable with Windows Live Messenger; adding interoperability with AIM means that they control ~70% of desktop IM client market share(more recent numbers on this are needed, but by the end of 2006 AIM was ~50 million, and both Yahoo! and Microsoft’s were ~20 million), and their clients can talk to everyone else’s. Yahoo! and AOL have both made progress in integrating IM with E-mail, something Microsoft still hasn’t done. As Yahoo! expands its e-mail services into enterprise markets, and enterprises increase their usage of IM, this could be a big deal.

3) Much better integration potential than with Microsoft. After being stuck in Time Warner’s in-fighting old media bureaucracy for so long, I’d imagine that AOL employees would be overjoyed to be brought into an organization that understands and is about the web. There’s also excellent potential for brand integration here:
– Yahoo! is a brand AOL users would be comfortable with.
– It’s a brand that it makes sense for AOL to adopt as it’s been expanding overseas operations(where Yahoo! already has a strong presence).
– The Yahoo! brand offers a graceful way to retire a brand that the tech-savvy have long scorned.
– Go to, then go to The portals are almost identical. It’s feasible that a full-scale integration of the two properties could at some point take place.

4) There are plenty of other reasons why an AOL/Yahoo! merger has potential. Concentration of content-provider partnerships, joint efforts in mobile services/advertising, online/offline music offerings, and the fact that both are much more youth-friendly brands than MSN or Google. Plus more.

Peet McKimmie (profile) says:

Re: My second correction of a

adding AOL’s visitors to Yahoo!’s puts Yahoo! at almost 200 million monthly uniques

This assumes, I suspect erroneously, that there is zero overlap between the set of people who visit AOL and Yahoo!…

I think it’s far more likely that both sites have a very high proportion of surfers with the “Portal mentality”, and thus combining their userbases will leave them with not much more than the larger of the initial two userbases.

John Milton says:

It seems the internet culture is lost to Ben Franklin’s phonetic language. However, I feel it necessary to wonder if anyone on the internet, these days, knows the difference between ‘then’ and ‘than’. I feel like I am reading from a novel that is un-worthy of any kind of an award (Old Man and the Sea — Ernest Hemmingway — reads like a 1st grade English book…much like these comments). Regardless, any company offering 44.6 billion for Yahoo! either have nothing but geniuses working for them or are the epitome of a low-browed knuckle dragging hominid incapable of even the simplest of tasks.

I would like to see Yahoo! taken over by AOL…would, most likely, be the end for two dying dogs. Both are a haven for predators — at least according to the volume of media coverage regarding both as opposed to similar sites — they should get along nicely.

Online shopping store (user link) says:

Yahoo Now Thinks AOL Will Be A Savior?

I cannot believe what I am reading. Has Yahoo gone completely crazy? First it wanted to do business with the Search Engine 500Ib gorilla, then now it wants to do deals with AOL too?
Fixing Yahoo should not be too difficult. Cut down on your workforce. Improve service. Advertise more and your problems will be over. Yahoo’s search engine is much better than that of the Gorilla monster because it indexes and ranks the website correctly. Unfortunately, most people don’t use it in searching. This is the major problem. This can be changed by focused massive advertising.

Silverwolf (user link) says:


AOL gets a bad rap because of their historical customer service behavior and how much they have lost due to mis-management.

But comparing them to feces ? Come-on, they aren’t that bad.

They do offer some compelling services, completely free of charge, and they are actively trying to improve those services all the time.

And they still have lots and lots of users.

I wouldn’t pay for it, but I don’t pay for Google or yahoo either.

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