The Perks and Pitfalls of a Yahoo/ AOL merger
August 1, 2014
An article on re/code titled Two Years and Still Stuck in a Revenue Rut, Will Yahoo’s Mayer Bite the AOL Bullet? attempts to separate fact from fiction when it comes to the possible merger. The sight of Mayer and AOL’s Armstrong chatting during the Allen & Co. conferences in Sun Valley proved too exciting for some reporters, who jumped to the conclusion that the two old friends were making a deal. While making it very clear that the merger is entirely hypothetical at this point, this article makes an argument for the perks of getting Yahoo and AOL together. The article states,
“AOL and Yahoo have very similar businesses and could easily combine them…Internally at both companies, this is not seen as a completely bad idea — both share numerous advertising overlaps, content overlaps, video overlaps and too many employees doing the same thing. In addition, Mayer could certainly use a decent exec she actually knows well like Armstrong at the top (presumably, him CEO, her chairman).”
However, the article also points out some hedging by Mayer who has made some comments about the possible merger being boring and “backward-looking.” On the other hand, if Mayer wants the Huffington Post, she may have to take AOL along with it. So the article is inconclusive. Will AOL and Yahoo finally get married? Can two Xooglers (former Googlers) make one scion named Revenue?
Chelsea Kerwin, August 01, 2014
Sponsored by ArnoldIT.com, developer of Augmentext
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