AOL mulls breakup, then merger with Yahoo

Mon Dec 6, 2010

AOL Inc, undergoing a radical transformation into the king of content on the Internet, is actively exploring a breakup involving a complicated series of transactions that may lead to a merger with Yahoo Inc, sources close to the plans told Reuters.

The plans are still in the exploratory stage and Yahoo has not been contacted, the sources said. The plans are also fraught with complications involving myriad moving pieces.

In many respects, the latest discussions are derivative of plans contemplated in 2008 and 2009 before Time Warner spun off AOL to Time Warner shareholders. http://www.reuters.com/article/idUSTRE6B50MF20101206