AOL Mulls Breakup, Then Merger With Yahoo


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.

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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.