What are the odds of Yahoo Inc. and AOL Inc. merger?

AOL Inc. is a mass media company whereas YHOO! Inc. is a search engine company. Both of these companies are American multinational internet and media corporations. Despite that these companies are not under the massive spotlight these days when compared to companies like Google, Yahoo and AOL were the powerhouses of Information Technology world in the past. In recent times, both of these companies have been going through rough phases therefore in order to revive its business; rumors are growing about a possible merger of Yahoo and AOL.

Many sources say that “Speculation is brewing about whether Yahoo! might use some or the entire $5 billion windfall it will get from the Alibaba IPO to purchase AOL.” Analysts believe that this is a very interesting proposition but the question here arises if this is the best option for Yahoo to purchase or merge with AOL? Is it worth the money or all this hard work will go in vain? In most people’s minds, Yahoo! and AOL is essentially the same thing. They are buffets of content. ETFdailynews.com reported that “The fortunes of these two businesses, however, rest mostly on advertising. And there’s plenty of competition for advertising dollars from the likes of Google and Facebook. Both companies need to evolve, and on that count, Yahoo has the upper hand, having invested more into buying intriguing start-ups.”