An AOL-Yahoo deal, with AOL retaining its Google search relationship, could rival Microsoft's initial $31-a-share buyout bid for Yahoo, according to Charles Di Bona, a research analyst at Sanford C. Bernstein.
That was one of three scenarios Di Bona laid out in a research note on Friday, and his favorite.
If Yahoo and AOL were to merge, Di Bona estimates that it could yield investors $28 a share. But that depends on AOL parent Time Warner kicking in $2 billion for its Yahoo stake and the combined entity generating a minimum of $500 million in synergies.
A better deal … Read more