AOL pondering plan to buy Yahoo

A merger of the two tech companies would create a giant to rival Google.

Yahoo’s stock jumped 13 per cent yesterday on news that AOL is attempting to structure a deal that would combine the two companies. It’s an ambitious idea, especially because AOL is only valued at USD$2.68 billion, and Yahoo is worth USD$20.56 billion. It’s unclear exactly how the purchase would work, but it’s believed AOL is in conversation with Chinese tech giant Alibaba to form a partnership big enough to take over Yahoo. Both AOL and Yahoo trail Google in ad revenue, and joining forces could help them compete against the popular search engine.