Now that Yahoo is imploding, it appears all ideas for the company are on the table — including acquiring AOL and installing Tim Armstrong as CEO.”Big investors” in Yahoo are telling Kara Swisher they would be interested in marrying the two companies. And Swisher reports: “Armstrong, said sources, has not shied away from the idea of Yahoo acquiring AOL and installing him as CEO with Bartz as chairman.”
We’ve long thought AOL and Yahoo were on a crash course towards a merger of some sort. They’re both trying (with varying degrees of success) to do the same thing. Combine the two companies, cut some fat, and maybe you’d have a healthy Internet company on your hands.
Could Yahoo afford AOL? Yes. AOL’s market cap is only $2.65 billion right now. Yahoo’s market cap is $19 billion and it has around $3 billion in cash on had.
But, we’re not holding our breath about a deal. Yahoo is hitting another rough patch, and it sounds like investors are just trying to think of anything to shake up the company and get the stock moving.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.