A Yahoo-AOL Combination Still Wouldn't Topple Google Or Facebook In Terms Of Ad Revenue

In the land of digital ad revenue, Google is king. Facebook’s been slowly growing its ad business since its mid-2012 IPO, while Yahoo and AOL lag behind these companies based on this important metric. But what if Yahoo and AOL were to join forces, which might actually happen?

On Friday, the activist fund (and “significant” Yahoo investor) wrote a letter to Yahoo CEO Marissa Mayer suggesting she explore “a strategic combination with AOL.” According to Starboard’s Jeffrey Smith, Yahoo’s core business lies with its “search and display advertising businesses,” and adding AOL’s ad revenue would certainly help bolster its bottom line. But a “combination,” should it happen in the near future, would still fall short of Facebook’s ad efforts, and it wouldn’t even come close to the advertising empire Google has created on the Web.

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