Is AOL Finally Going to Merge with Yahoo?

Paul Lilly

Citing "sources close to the plans," Reuters is reporting that AOL is seriously considering merging with Yahoo, which will first require a "complicated series of transactions."

Nothing is yet imminent, but according to Reuters, the plans are in the exploratory stage. A bunch of obstacles also stand in the way of this happening, not the least of which includes a breakup of AOL's two main businesses, it's legacy dial-up service (which would be sold to EarthLink) and it's display advertising business, which would merge with Yahoo.

This is essentially the same thing AOL hoped to accomplish back in 2008 and again in 2009 before Time Warner decided to spin off AOL rather than deal with the tax headaches what would accompany a breakup.

More on the story here .

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