Beijing October 15th morning news website The Motley, investment Fool today published a signed for Carle ·’s (Carl Bagh); the analysis of the article said, AOL intends to joint acquisition of YAHOO and Private Equity Investment Firm to challenge the dominance of Google, it looks like a "snake swallowing" the transaction.
according to previous reports, AOL is planning with the silver fox (Silver Lake Partners) and Blackstone Group (Blackstone Group LP) and other Private Equity Investment Firm to buy YAHOO. This seems to be a bug says, pile Tunxiang trading, the reason is that the AOL valuation of the company for $2 billion, while YAHOO has a market capitalization of $20 billion.
, AOL formed the consortium intends to achieve this deal by YAHOO’s main asset segmentation methods, such as YAHOO held by the Alibaba (1688.HK) 40% of the shares of the shares, analysts valuation of $10 billion. After stripping such assets, AOL will be able to acquire YAHOO.
article pointed out that another possibility is that YAHOO will launch a reverse merger of AOL, YAHOO will be able to take advantage of the divestiture of non core assets after the merger with AOL.
affected by the acquisition of hearsay reports, YAHOO shares rose 10%. AOL and its partners are to follow the first Private Equity Investment Firm YAHOO shareholders as the goal of the strategy, then will directly negotiate with YAHOO; as a result, when AOL formally approached YAHOO when the available market judgment.
AOL is currently in transition mode, the company is undergoing structural reforms, the goal is to become a provider of high-quality original content. AOL has been building its own original content copywriter team, recently hired hundreds of contributors to create original content.
at the same time, AOL also has been engaged in mergers and acquisitions recently bought news blog site TechCrunch, previously also has acquired Engadget, Autoblog and Joystiq, the focus is always generate traffic, because advertising is the core business of AOL. Therefore, the merger of AOL and YAHOO will bring both companies have the necessary scale effect.
YAHOO has been focused on improving the search revenue, the company has formed a partnership with Microsoft. According to the agreement reached in July last year, Microsoft won the exclusive license for a period of 10 years, YAHOO’s core search technology into its Internet search platform; at the same time, Microsoft will be (Bing) search engine YAHOO website will become the exclusive algorithmic search and paid search platform.
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