Time Warner CEO addresses Yahoo-AOL talk

Time Warner's CEO said Tuesday a Yahoo-AOL deal should not be ruled out, according to a report in MarketWatch.

Chief Executive Jeff Bewkes told investors at the Bear Stearns Media Conference that his company would consider an acquisition that could create a stronger AOL for the media giant, according to the report.

"Would something added to AOL, or AOL added to something else, make it stronger and more valuable? We can't rule it out and we wouldn't. It's our obligation to make sure AOL gets into whatever configuration that makes it the strongest and most valuable," said Bewkes, according to a Webcast of his luncheon speech.

That said, however, Bewkes also noted a Microsoft-Yahoo deal could benefit AOL by validating the benefits of an advertising network, aka AOL's Platform A, according to the report. Bewkes also said that a Microsoft-Yahoo deal could also result in more competition for AOL.

For Yahoo, in the past two days, its fishing expedition for potential suitors to rival Microsoft's megabillion-dollar buyout bid, has left it with one dead deal in the form of News Corp., a live one with AOL, and one on the hook with Microsoft.

Ever heard the saying, "fish or cut bait"?

[deepanjan_nag]

What's the big idea behind the possible merger

Yahoo! and AOL have too much in common and a merger will result in a lot of redundancy. Why on earth should Yahoo! want to do that just to keep Microsoft at bay? I would hate Microsoft gobbling Yahoo!, but Yahoo! merging with AOL would be worse. Time Warner learned a lesson but it seems Yahoo! fails to learn from precedence.

I only hope Yahoo! has a semblance of sanity left before making decisions critical to its very existence.