Yahoo preparing for fresh AOL talks

The prospect of a merger or partnership between Yahoo and Time Warner’s AOL is still on the cards.

Yahoo HQ

Internet portal Yahoo is set to hold fresh talks with AOL, the internet arm of Time Warner, as both companies look to consolidate and expand market share in the internet advertising and content arena.

A report in the Financial Times newspaper states that approval for the talks came as Yahoo's directors met for the first time since activist investor Carl Icahn was given a seat on the board.

Any form of tie-up between the two companies would not only give Yahoo access to an even larger audience for its advertising services, but would serve as an important obstacle to prevent another takeover attempt by Microsoft.

Active deal negotiations are not underway at this stage, the paper said.

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