A proposed merger of Internet pioneers AOL Inc and Yahoo Inc could create a nimbler player in Web video, but strong growth, the measure of success in Silicon Valley, would remain elusive. Investors are revisiting one of the most speculated Internet combinations, after activist investor Starboard on Friday pressured Yahoo to merge with AOL.A pairing could help the companies compete in their core advertising business. But even combined, they would remain but a shadow of the Internet powerhouses they once were, analysts and advertising experts said.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.
AOL Inc. (AOL) is a global Web services company with a range of brands and offerings, and a global audience. Shares of AOL traded higher by 3.68% or $1.58/share to $44.55. In the past year, the shares have traded as low as $32.19 and as high as $53.28. On average, 1173030 shares of AOL exchange hands on a given day and today's volume is recorded at 7216927.
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