AOL-Yahoo! Merger: Solution For The Wrong Problem

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Just days after Yahoo! fired CEO Carol Bartz, the US-based online search and advertising company is reported to have restarted talks to merge with its long-term but smaller rival AOL. The companies have neither confirmed nor denied speculation regarding a deal, though a tie-up of some kind has long been seen by analysts as a means of fending off competition. BMI, however, sees little value in a combination of the two companies at this time and would prefer to see Yahoo! adopt a growth strategy focused on the content and connected device ecosystem if it is to both re-engage with consumers and compete directly with Google and Facebook, among others.