Huge M&A deals like Yahoo-AOL have enough challenges without both sides not really wanting to do them. And are Jerry and the board seriously going to make this decision without consulting Yahoo’s new CEO?
We hope Yahoo and Time Warner execs are having fun hanging out together. Wake us up when it’s over.
Yahoo and Time Warner executives have met in the past few weeks and continue to negotiate over terms, said two people familiar with the situation. Time Warner would hand over AOL’s advertising business to Yahoo in exchange for a stake in the combined company, said the people, who declined to be named because the talks aren’t public.
A deal would bolster Yahoo’s position in the market for so- called display advertising and add subscribers for services such as e-mail and instant messaging. Yahoo and AOL would need to cut as many as 3,000 jobs for the deal to pay off, said Jeff Lindsay, an analyst at Sanford C. Bernstein in New York.
“It’s difficult and high-risk — a merger between companies in similar activities but with very different cultures,” Lindsay said. “It’s not the best deal by far.”
Differences remain between the two sides and an agreement may not materialise, two other people familiar with the discussions said.
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