Microsoft-Yahoo-AOL threesome just a sad, sad fantasy
The fantasy that someone will buy AOL from Time Warner in a complicated deal is getting even AOL CEO Randy Falco hot and bothered. A tipster told Silicon Alley Insider that Falco recently fumed, "When is New York going to sell us?" And to whom? "Sources close to AOL" told VentureBeat's Matt Marshall that Microsoft plans to aquire both Yahoo and AOL after those companies merge. We planned to give you a 100-word version of Marshall's story, but seven paragraphs in, we realized it made no sense.Here's our theory: Some executives at Time Warner bent Marshall's ear in an effort to drive up AOL's price. Or rather, prop it up. Recent reports suggest Yahoo wants to pay $5 billion for all of AOL, only months after deal chatter put the price more in the $10 billion range. When Google bought its 5 percent stake in AOL in 2005, it valued the company at $20 billion.