Yahoo, AOL propose merger


Reuters: A pairing could help the companies compete in their core advertising business, but strong growth would remain elusive.

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Reuters: A pairing could help the companies compete in their core advertising business, but strong growth would remain elusive.

Cost cutting after a merger would generate plenty of savings, some $1 billion, according to Starboard’s analysis. Accelerating business growth would be harder.

“Neither company is a leader in ad dollars, and other than cost savings, there is little to gain by combining them,” said Erik Gordon, a professor at the Ross School of Business at the University of Michigan.

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