AOL Mulls Breakup, Then Merger With Yahoo

FOXBusiness

AOL (NYSE:AOL) is reportedly considering breaking itself up through a complicated series of moves that could lead to a long-rumored merger with Yahoo! (NASDAQ:YHOO).

According to Reuters, AOL is actively exploring breaking apart its two main businesses: its legacy dial-up Internet service and display advertising business.

Continue Reading Below

However, the plans are still in an exploratory stage and Yahoo! hasn’t been contacted, the wire service report. It would also be highly complicated with a number of moving pieces.

Since breaking off from Time Warner (NYSE:TWX), AOL has been the subject of a number of rumored tie-ups with Yahoo!, but a deal has yet to emerge.

A break up would be contingent on the buyers for the businesses, including Yahoo! and EarthLink (NASDAQ:ELNK), Reuters reported.

AOL’s stock was inactive Monday morning. Shares of Yahoo! slid 0.24% to $16.31 ahead of the opening bell.