Yahoo And AOL: A Marriage Of Convenience Or A Thing With Two Heads?

Apparently, the now ancient discussions between Yahoo and Time Warner about the possible acquisition of AOL by Yahoo are still moving along, glacially. Kara Swisher reports that the deal is stalled by a gap of a billion in price:

[from Update on the AOL-Yahoo Deal: “Like Trying to Catch a Falling Knife”]

Yahoo wants to pay about $3 billion to $4 billion dollars, while Time Warner wants $5 billion to $6 billion.


As for AOL, it is continuing to make cuts of lots of stuff that has not worked and streamline itself for what most expect will be an eventual sale, including lopping off its money-generating access business from its advertising, content and communications one.

The Thing With Two Heads, originally uploaded by Stowe Boyd.

So, if it is a good fit, why doesn’t Yahoo make the move? Are they afraid that it will be a thing with two heads, as opposed to an integrated whole? Time Warner definitely wants out. Shouldn’t they be able to split the difference? I am predicting this will happen.

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