Will Yahoo Bid Put AOL in Play?

The potential to redraw battle lines in a struggle for internet domination, Microsoft's bid for Yahoo could end up putting other companies in play. AOL has potential of being a buying target, which has been in the middle of a turnaround.

According to the NY Times, AOL once was a target of speculation, but chatter has died down after Microsoft made an offer for Yahoo. Google could be among those who look at AOL with renewed interest, because their businesses include an advertising platform, internet service, and a website. Though Google already owns 5 per cent of AOL, Google may be compelled to make the offer to even out the Microsoft-Yahoo merger. A conference call made Friday discussed the Yahoo bid, and Microsoft executives were asked about possible offers from other companies. Brad Smith of Microsoft's general counsel said “any number of companies might have an interest” in Yahoo. A Google-Yahoo merger, according to Smith, is "clearly prevented by the antitrust laws.” Time Warner's departed executive, Richard Parsons, has repeatedly told analysts and investors that it has considered AOL a valuable asset to end speculation of a sale. He was recently succeeded by Jeff Bewkes, and that may change the picture as he hasn't tipped his hand on any question of possible divestitures.