Yahoo, AOL Close In on Tie-Up Deal from the Wall Street Journal reports that Yahoo and AOL are close on finalizing a deal that would combine parts of both companies. The deal would bridge Timer Warner’s Internet operations with Yahoo by folding the AOL unit into Yahoo. In return, Time Warner would make a cash investment of about 20% of the combined entity, valuing AOL at about $10 billion.
Note From Danny: “In my talk today at SMX Sydney with Google vice president Marissa Mayer, she noted that the Yahoo deal that it was a way for Google to measure Yahoo’s traffic and how well it monetizes. This is important. This is not just a Yahoo test – it’s a test for Google. And from that test, Google will better understand how much it could make in a crucial revenue guarantee to a combined Yahoo-AOL, which might help the deal move along and keep Yahoo out of Microsoft’s hands.”