Yahoo! and AOL re-enter merger talks

Yahoo! has re-entered into discussions with AOL and its US owner Time Warner about a possible merger between the two companies. The development follows Microsoft’s failed attempt to acquire Yahoo! earlier this year.

Talks were held between Yahoo! and AOL late last year but had since broken down. Yahoo!’s new board has now agreed to re-consider AOL’s offer.

Time Warner chief executive Jeff Bewkes says the company is looking carefully at the future of AOL, and how it can improve its positioning as a leading internet service.

Last year’s merger talks between AOL and Yahoo! was valued at £5bn, but it failed to materialise due to differences over price.

In August, it was announced that Microsoft would acquire online survey company Greenfield Online for $486m (£265.8m). The deal included its popular European shopping comparison site Ciao. It was Microsoft’s first acquisition since its failure to buy Yahoo!

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