AOL Plans Merger With Yahoo

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AOL Inc. is strongly considering dividing the company, a move that could ultimately lead to a merger with Yahoo, sources told Reuters.

(More on Techland: AOL’s Project Phoenix: E-mail Is Innovative Again)

Talks of a breakup come after years of complicated and somewhat disappointing strategies that came to a head since in 2009 when Time Warner turned AOL over to shareholders. It’s rumored that the company has considered a breakup since the spin off, according to Reuters. “You can drive the pieces into people’s hands that could pay top dollar for them and create value, or spin them off,” said one of the sources.

(More on Techland: AOL Decides Web Video Is The Future)

Plans would involve separating AOL’s Internet service and display advertising ventures and is obviously riding on the cooperation of the two would-be buyers: Yahoo and EarthLink. No word on when a deal could be made or what this will mean for AOL’s content site or e-mail platform.

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