Yahoo! Inc. (YHOO), AOL, Inc (AOL) Merger Less Likely


Media was flooded with rumors and gossips over CEO’s of two big technology giants, having drinks and talks in a bar at Sun Valley. As soon as Yahoo! Inc.  (NASDAQ:YHOO)’s CEO, Marissa Mayer, and AOL, Inc. (NYSE:AOL)’s CEO, Tim Armstrong, were spotted one late night in Sun Valley bar, experts thought its likely to be a deal or a merger very soon. Discussing this topic in a program, Bloomberg’s Tom Giles said that he doesn’t think that there will be a merger between Yahoo and AOL, Inc. (NYSE:AOL) because of the fact that there is not much in AOL, Inc. (NYSE:AOL)  that Yahoo! Inc.  (NASDAQ:YHOO) can use at the moment. He said that AOL has not much value in it to push Yahoo! Inc.  (NASDAQ:YHOO) in the industry again. He agreed with the opinion that AOL, Inc. (NYSE:AOL) is more or less the same Dialup Company, having fewer marks in the content generation stream online.

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“Anytime you see two CEOs getting together, especially at a conference like Sun Valley, where we know a lot of big deals have come together in the past and a lot people go there, you know, to talk deals, I don’t think that this is what they were doing,” said Giles.

Experts also discussed Yahoo! Inc. (NASDAQ:YHOO)’s new partnership with Live Nation to stream one live show every day for the next year. Bloomberg’s Alix Steel said that this is an effort by Yahoo! Inc.  (NASDAQ:YHOO) to expand its online video streaming services and to get the most out the ad based revenue. She said that Yahoo will have to stand out among other services like Youtbe, and Apple Inc. (NASDAQ:AAPL).

“They do have to separate themselves although from Youtube, from Apple, from real networks of course to woo those advertising upfront dollars which can run into the billions,” said Steel

Giles added that this latest online concert streaming venture will be good for Yahoo! Inc.  (NASDAQ:YHOO) but it’s not that substantial keeping in view the long-term industry trends. He said that online users who are fond of video streaming, music and movies find Youtube as their ultimate source of satisfaction, so Yahoo! Inc.  (NASDAQ:YHOO) will have to try harder to make its mark in streaming business.

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