SUMMARY
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Would the proposed merger of AOL Inc and Yahoo spark a revival of the Internet pioneers? While analysts say a merger could cut up to $1 billion in costs as the companies integrate staff and systems, it would be harder to build up strong growth in their core advertising businesses. A Reuters report said some advertising experts and analysts believe there is little to gain by combining the two companies, after activist investor Starboard called on Yahoo to merge with AOL. The two companies have a decreasing share in the digital ad market, but a tie-up could help in video programming and new ways of buying ads. Reuters said AOL’s acquisition of electronic video advertising platform Adap.tv could fit with Yahoo’s efforts to deliver more online video programming.
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