Yahoo! Inc (YHOO), AOL Inc (AOL): Not Even A Spark Of Love Between The Two

We’ve heard lots of rumors about a potential merger between Yahoo! Inc. (NASDAQ:YHOO) and AOL, Inc. (NYSE:AOL). So, Bloomberg decided to see how the later feels about it, since the former is not such an inspirational story. Tim Armstrong has been striving to bring the company back to life after its $165 billion megamerger failure. AOL, Inc. (NYSE:AOL) is still down almost 14% year to date to a price of near $40, but this is just a sign that there’s no time to fretter away, not one to grief.


“When you hear those type of rumors floating around is because we’re doing very well as a company. We took a company that was the worst merger in history. We’ve gotten it back to growth, we’ve roamed six quarters in a row now and we’re doing a very good job in where the future is around: video programmatic and big content brands,” said Tim Armstrong.

Yahoo! Inc. (NASDAQ:YHOO)’s like a fading memory of internet success as the business hasn’t done much for quite a while. Consequently, Starboard Value’s suggestion to Marissa Mayer had a one-sided view on the potential relationship and it involved the search engine company to free-ride on AOL, Inc. (NYSE:AOL)’s success the same way the it did with Alibaba Group Holding Ltd (NYSE:BABA). This is why Tim Armstrong didn’t even bother dedicating a thought to merge with Yahoo! Inc. (NASDAQ:YHOO). He is flying to New York in a short while to present AOL, Inc. (NYSE:AOL)’s agenda for the year to come.

“That agenda is transformation, how do we take the next steps operationally as a company and that given the board the presentation there is not one mention of Yahoo! or anyone else in that deck. It’s how do we operate our company in 2015 to be really successful,” added Tim Armstrong.

This doesn’t mean that Yahoo! Inc. (NASDAQ:YHOO) is completely useless, it’s just that AOL, Inc. (NYSE:AOL) would rather focus on core company activities.

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