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US: An AOL, Yahoo merger could be heaven or hell

By  |  January 23, 2014

While talk of a potential merger between internet giants AOL and Yahoo has caused a boost to AOL’s stock, reports say such a merger has a significant chance of major turbulence.

While neither company has confirmed that a merger is being considered, hedge fund manager Ironfire Capital, which owns stake in both companies, recently told reporters that the companies would absolutely merge.

The similar companies may seem like a wise pairing, some analysts are not enthusiastic about a potential deal with the threat that two struggling online content and advertising providers may join forces and create an even larger, struggling company, reports say.

Still, according to Ironfire’s Eric Jackson, Yahoo could potentially acquire its peer tax-free by using Yahoo Japan funds. “It would be a way of saying ‘we are growing,’” Jackson said of a possible Yahoo, AOL deal.

Full Content: CNN

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