Last steps to the Yahoo-AOL merger
For Digital Future | October 6, 2008
Yahoo continues merger talks with AOL. It seems that their merger will materialize this month or next as much. AOL is one of the most important business of Time Warner, who wants this agreement more than ever.
The agreement is currently being discussed is the acquisition of AOL from Yahoo (content, services and advertising). An acquisition that will move about 2,000 million dollars, and will allow AOL to participate in Yahoo, the midpoint between Google and Microsoft, hence the interest of the AOL transaction.
The two companies believe that advertising platform to monetize Yahoo AOL much better what is generating today, a little more than 2400 billion dollars annually.
With the merger, will consolidate the dominant position in the mail that between Yahoo and AOL have 48% of all e-mail accounts worldwide, with Microsoft second with 42%. They would also have 39% of the entire market for instant messaging, while Microsoft has 55%.
Yahoo acquires a movement with this portal very similar to what is himself. With this model will have to continue to advertising on Google searches to impossible for a while for news to evolve.
Microsoft looks askance this operation, with a future purchase will result from this merger. In fact, the only thing that can prevent the monopoly of Google alliance is a Microsoft-Yahoo-AOL, which only obtained 25% market share of searches, while Google has 65%. But the triple alliance would enable Google to overcome and lead the global advertising market on the Internet, with 40% of the market.
More details at Techcrunch
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