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Monday, 6 December 2010 - Exclusive: AOL mulls breakup, then merger with Yahoo |
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    Read more with google mobile : Exclusive: AOL mulls breakup, then merger with Yahoo |

    Edition: U.S. Article Comments (0) Email Print Reprints Technology AOL mulls breakup, then merger with Yahoo Google takes on Amazon, Apple in e-books market LG Display, others face $928 million EU fine: source India wants BlackBerry access from companies PayPal suspends WikiLeaks donations account Google to buy anti-piracy software firm Widevine Huawei sets up cyber security center in UK Top papers to charge online, but how? Limewire music-sharing service to close Dec 31 More Technology news Read Euro zone worries pressure Wall St 10:11am EST Analysis: WikiLeaks stirs debate on info revolution 10:50am EST China's Hu tells Obama Korea tension could go out of control | 10:10am EST WikiLeaks lists sites U.S. says vital to interests 10:04am EST Exclusive: AOL mulls breakup, then merger with Yahoo 10:39am EST Discussed 70 Obama, Republicans in tax face-off at White House 59 Senate bid to renew ”middle-class” tax cuts fails 55 WikiLeaks plans to release a U.S. bank’s documents Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Playboy opens Mexican casino Sun, Dec 5 2010 Row over vote orgasm video Fri, Nov 19 2010 Analyst Research Report Title Price Trading Report for (TWX). A detailed report, including free correlated market analysis, and updates. Provider: Stock Traders Daily $18.0 Buy TWX: Risk/Reward Rating: Full Report: Cash Truth Behind the Reported Earnings Provider: New Constructs, LLC $25.0 Buy TIME WARNER INC (TWX=US) - REPORT FOR ACTIVE TRADERS Provider: Pechala's Reports $25.0 Buy NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. Green Business Google technology to aid forest efforts Google's new platform, Google Earth Engine, takes vast amounts of forest images from satellites and crunches it, allowing scientists to monitor forests from their own computers in minutes or seconds instead of the hours or days it took before.  Full Article  Special Report: Making forests pay in a warming world More Green Business news Exclusive: AOL mulls breakup, then merger with Yahoo Tweet This Share on LinkedIn Share on Facebook By Nadia Damouni NEW YORK (Reuters) - AOL Inc, undergoing a radical transformation into the king of content on the Internet, is actively exploring a breakup involving a complicated series of transactions that may lead to a merger with Yahoo Inc,... Related News UPDATE 1-Evercore hires tech banker from Jefferies Mon, Nov 29 2010 Google and Facebook rivalry takes centerstage Mon, Nov 15 2010 Yahoo says report of 20 percent in layoffs "misleading" Thu, Nov 11 2010 UPDATE 2-Yahoo says report of 20 pct in layoffs "misleading" Thu, Nov 11 2010 Michael Eisner partners with AOL on web series Wed, Nov 10 2010 Analysis & Opinion Deals wrap: AOL still eying Yahoo deal? Related Topics Technology » Media » Deals » Inflows Outflows » Stocks     The AOL logo is seen on the outside of the building housing the companies corporate headquarters in New York May 28, 2009. Credit: Reuters/Lucas Jackson By Nadia Damouni NEW YORK | Mon Dec 6, 2010 10:39am EST NEW YORK (Reuters) - AOL Inc, undergoing a radical transformation into the king of content on the Internet, is actively exploring a breakup involving a complicated series of transactions that may lead to a merger with Yahoo Inc, sources close to the plans told Reuters. The plans are still in the exploratory stage and Yahoo has not been contacted, the sources said. The plans are also fraught with complications involving myriad moving pieces. In many respects, the latest discussions are derivative of plans contemplated in 2008 and 2009 before Time Warner spun off AOL to Time Warner shareholders. At the time, the media conglomerate had explored the option of breaking apart AOL's two main businesses. Its legacy dial-up Internet service would have been sold to or spun off into EarthLink or United Online. Its display advertising business would have been merged into Yahoo, the sources said. To avoid complication and to push ahead with plans to rid itself of a decade-long nightmare, Time Warner spun off AOL rather than face heavy tax liabilities that would have been associated with a break up, said the sources. The sources declined to be named because they were not authorized to speak to the media. AOL has continued to explore a break up option since the December 2009 spin off. "You can drive the pieces into people's hands that could pay top dollar for them and create value, or spin them off," said one of the sources. This strategy is dependent on the buyers for the parts, including Yahoo and EarthLink, whose directions have changed since Time Warner first considered these plans, said the sources. EarthLink, for instance, was once a willing and capable buyer of AOL's cash-generating dial-up business. But it has agreed to buy DeltaCom Inc for $516 million, tying up most of its free cash and is unlikely to pursue another big transaction for now, another source said. Combining Yahoo and AOL's web properties makes strategic sense, said Todd Rethemeier, analyst at Hudson Square Research, Inc. Yahoo's home page attracts audience to its sports, finance, general news and email, while AOL, has strengths in maps, and entertainment news, Rethemeier said. Yahoo, which is expected to generate $1.64 billion in Ebitda this year, could support AOL's display ad business, giving AOL the confidence to shed the dial up division, a big financial engine at the company. AOL declined to comment. A spokesperson for Yahoo also declined to comment, but a source close to the company reiterated that it is not seeking proposals or in any buy-out discussions with AOL. DIAL-UP BUSINESS AOL has been reluctant to shed its dial-up business as it remains a major source of revenue and its existing 4 million customers remain a big contributor of traffic to AOL's homepage. The division is expected to contribute a little over $1 billion of revenue out of $2.4 billion overall revenue this year, according to Rethemeier's estimate. 1 2 Next Technology Media Deals Inflows Outflows   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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