An AOL-Yahoo Deal Will Hit "Pretty Big Wall Of Impossible"

AOL has hired financial advisors to explore all its options, including the possibility of combining forces with Yahoo, the Wall Street Journal reports.

The AOL-Yahoo talks have been simmering for about a month now, but nothing has really happened.

One reason? It’s would be a very complicated transaction, Kara Swisher of All Things D reports.

One big time investor who looked at the two companies says, “It looks great conceptually and everyone gets all hot and bothered…But when you actually do the numbers, you hit a pretty big wall of impossible.”

There are “onerous” tax implications, says Swisher. Plus, you’d have to have both AOL and Yahoo on board with this plan. So far, that’s not the case. Things could still change, of course. AOL and Yahoo have not had formal discussions about merging.

The Wall Street Journal does say AOL is exploring other options to turbo charge its growth. Tim Armstrong must be feeling the heat from his promise to get AOL’s display ad business growing by double digit percentages by this time next year.

See Also: AOL’s Ad Business Is Actually Starting To Recover

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