AOL, undergoing a radical transformation into the king of content on the Internet, is actively exploring a breakup involving a complicated series of transactions that may lead to a merger with Yahoo, sources close to the plans told Reuters.
The plans are still in the exploratory stage and Yahoo has not been contacted, the sources said. The plans are also fraught with complications involving myriad moving pieces.
In many respects, the latest discussions are derivative of plans contemplated in 2008 and 2009 before Time Warner spun off AOL to Time Warner shareholders.
At the time, the media conglomerate had explored the option of breaking apart AOL’s two main businesses. Its legacy dial-up Internet service would have been sold to or spun off into EarthLink or United Online. Its display advertising business would have been merged into Yahoo, the sources said.
I can remember when AOL was the default choice for internet access for those who weren’t tech-savvy, when only geeks (like myself) would use another ISP to get to the internet. Now it’s gonna be broken up and sold off to other companies?
How the (formerly) mighty have fallen.