Wednesday, October 15, 2008

Yahoo to Buy AOL?

2 months ago, I had buying AOL as #2 on my list of Top 10 things I'd do if I were running Microsoft. Looks like the folks in Sunnyvale read my column before the powers-that-be in Redmond got around to it as Yahoo is about to beat Microsoft to the punch again.

Over the past week, rumors have been swirling that Yahoo is close to acquiring AOL for the cool price of $8 billion. This would bring its combined search share up to 25% -- still not within spitting distance of Google but nearly 2.5x that of Microsoft.

The real nut here for Yahoo would be in a bolstered display offering with massive scale for behavioral targeting, search retargeting, and video. Once again, I have to give props to Yahoo for continuing to press forward when it could be ducking and running.

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