About a month ago, I predicted Microsoft’s bid for Yahoo would temporarily fail and give Yahoo 12 months of do or die and that instead Microsoft would buy AOL, a company that wants to be bought.
The Wall Street Journal reports Yahoo is ‘stepping up’ talks with AOL over a merger. In my mind, that has zero percent chance of happening but it does establish a set of valuation principles for AOL that will ultimately lead it to the Redmond negotiating tables.
