Various press reports indicate that Time Warner (TWX) may be close to combining its AOL unit with Yahoo! (YHOO). At the same time, Microsoft (MSFT) is planning to make a joint bid for Yahoo! with news corporation.
The News Corp options would see MySpace, Yahoo!, and MSN combined.
A Yahoo! combination with AOL would probably use Google’s (GOOG) search technology. The savings from combining the two companies could probably be in the billions of dollars a year.Staff cuts would be part of that. Outsourcing search functions to Google would be another part.
The by-product of these maneuvers is that the price for Yahoo! just went up considerably The company board made a series of shrewd moves.
Douglas A. McIntyre