Time Warner’s (TWX) AOL Takes Run At Yahoo! (YHOO)

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By Douglas A. McIntyre Published
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Joining the contest to see who will own Yahoo! (NASDAQ: YHOO), Time Warner’s (NYE: TWX) AOL has entered the fray competing with News Corp (NYSE: NWS) as a company which is intense talks to see if it can win a deal with the No.2 search company. Microsoft (NASDAQ: MSFT) has already offered $44 billion for Yahoo!

According to The Telegraph "AOL’s determination to present itself as the most attractive of the white knights available to Yahoo! follows the formal rejection last week of Microsoft’s $31-a-share offer for Yahoo!."

With a market cap of $60 billion, Time Warner could not buy Yahoo! outright because the portal company already has an offer for $44 billion from Microsoft. But, like News Corp, it could offer to put AOL into Yahoo! to take a piece of the firm. With AOL currently valued at about $20 billion, this stake might be as big as 33%.

In a consolidation AOL and Yahoo! could cut large numbers of staff and Yahoo!’s search could be the de facto product for all of AOL greatly expanding it reach. Google (NASDAQ: GOOG) has this franchise now, but might give up its arrangement to block Microsoft.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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