Possible “Marriage” Between AOL and Yahoo

AOL American group wants to expand through strategic acquisitions and has hired financial advisers to consider a possible merger with Yahoo!.

Although currently has a market capitalization lower than those from Yahoo! (2.68 billion dollars from 20.56 billion dollars), AOL plans to launch a purchase offer for one of the biggest online brands,

Sources close to Yahoo! told Reuters that the company is not seeking and has not received any offers and they are also not talking to AOL about that.

However, the purchase offer would involve a partnership between AOL and several private equity funds. Among companies that have expressed their interest in entering the partnership with AOL or to engage independently in the race to acquire Yahoo! include the funds Silver Lake Partners and the Blackstone, said sources close to the situation.

AOL has not yet submitted a proposal to Yahoo, but the group’s financial advisers had “ideas” for a possible acquisition.

Among the considered options are the merger of Yahoo and AOL’s online operations and selling of the Yahoo’s Asian assets to recover part of the capital in the benefit of shareholders.

Another idea would involve combined operations by acquiring a private equity fund that would provide dividends to shareholders Yahoo.

AOL is also studying alternatives which are not involving an agreement with Yahoo!

Preliminary discussions took place between private equity funds, financial advisers and directors of AOL, which did not involve representatives of Yahoo yet. In these circumstances, negotiations may not necessarily lead to a takeover bid.

AOL and Yahoo representatives weren’t immediately available for official comments.