During AOL’s first quarter earnings call this morning, CEO Tim Armstrong described the competitive landscape as AOL versus Yahoo versus Demand Media
Tim emphasised that it’s becoming clear that Yahoo has “switched their strategy to a strategy that is more similar to ours.”
He means that Yahoo has increasingly moved to become a media company that makes complimentary technology products (not the other way around).
We agree with this view, and suggest that if AOL and Yahoo are going to be in the same business (media) they would benefit shareholders with a merger that cuts out all the (many) overlapping costs.
Here’s the clip:
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