Monday December 06, 2010

AOL Mulls Breakup, Then Merger with Yahoo

The one time Internet giant AOL , is reported to be exploring a split off of its dial up internet and display advertising services. The internet business will be sold off and the remaining holdings will be merged with Yahoo. Once known as the world’s largest online community, AOL has suffered loss of membership to faster broadband ISP carriers.

Combining Yahoo and AOL's web properties makes strategic sense, said Todd Rethemeier, analyst at Hudson Square Research, Inc. Yahoo's home page attracts audience to its sports, finance, general news and email, while AOL, has strengths in maps, and entertainment news, Rethemeier said.

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