Aol Wants To Merge With Yahoo

In the past few weeks, AOL's CEO Tim Armstrong has met with a number of important shareholders

. He wants to sell it to Yahoo. The move will save $ 1.5 billion of costs. Since Yahoo itself is ongoing strategic review, AOLs attraction to the Wall Street declines. However, Armstrong is still trying to convince shareholders to support sell AOL to Yahoo.

Armstrong had met with one of the top 20 shareholders of AOL. He said the focus of the meeting has changed from the fundamentals from a year ago to the problem of how to split the business, how much each individual business values and how to sell these businesses in order to gain value.

Another shareholder of AOL said that Armstrong once said the merger of AOL and Yahoo will help both companies save 1 to 1.5 billion U.S. dollars of costs because some of the data center and news sites that AOL and Yahoo now have are repeated, such as sports, entertainment and financial news websites.

Armstrong believes that through the merger, AOL and Yahoo will have a larger user base, which is conducive to attracting advertising agencies. AOL's shareholders said they welcomed the merger of AOL and Yahoo, but it is not clear whether Armstrong can push the final complete of the deal.

Armstrong departed from Google to join AOL in 2009. Investors had previously hoped that Armstrong can lead AOL to recovery. Armstrong's previous strategy is to make AOL become a top media company by relying on advertising revenue. But so far, AOL failed to acebook, Google and Yahoo in the aspect of attracting advertisers.

In the August of this year, AOL's quarterly results announced were far below expectations. The company said that this was mainly due to the advertising sales growth is weaker than expected. Subsequently, AOL's stock price fell 31 percent. In September, AOL, Yahoo and Microsoft became partners due to the advertising business, jointly fighting against Google. The idea of promote the merging of AOL and Yahoo is not new. As early as 2008, when Microsoft tried to bid for Yahoo, some people of the industry have raised the idea.

As Armstrong need to find an exit, he does not want to do as in the past 18 months. He wants to quit. He is a person who has a lofty goal, but AOL has been difficult to restore. But Armstrong definitely is willing to charge the combined company of Yahoo and AOL.

by: Amanda Xia

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