Yahoo Joins AOL Chase; Regulatory Issues Likely

Updated at 10 PM PST

So say this TheStreet.com story: Yahoo has joined long list of AOL suitors, along with Microsoft one one hand, and Google and Comcast on the other hand. I would suppose you could add News Corp and IAC to the list too…

WSJ is now reporting the same…but the prospect of a linkup between AOL and Yahoo would likely face scrutiny from antitrust regulators. Such a deal would combine the two largest Web properties in terms of audience size, says the story.

The media giant has made clear to all suitors that it wants to retain control of AOL and is only willing to sell a minority stake. Time Warner also doesn’t want to accept Internet stock as part of a purchase price, which could crimp a Yahoo bid. Google is discussing a deal that values AOL’s Web properties at about $10 billion.

Reuters: The story says the discussions are “informational” and said it was far from the level of depth AOL has reached with Microsoft Corp. or with Google Inc.

AP: News Corp. has also expressed interest, but those discussions have largely ended

WaPo: Corporate financier Carl C. Icahn said in an interview yesterday that selling a stake in AOL was positive, provided the giant media company uses the cash to help pay for a $20 billion stock buyback. Icahn also wants Time Warner to sell or spin off to shareholders its cable systems unit.

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