AOL and Yahoo: All the Reasons They Should Merge

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Feb. 6 (Bloomberg) -- Bloomberg's Edmund Lee reports on a possible Yahoo and AOL merger on Bloomberg Television's "In The Loop." (Source: Bloomberg)

The struggles with yahoo!, there is that speculation -- could they merge?

The thing about tim armstrong is that there is nothing above his pay grade.

He loves brands.

He is an advertising guy.

He gets brands.

Yahoo!

Is still a brand, a big brand, a well-known brand, tons of traffic.

They tie up could make sense.

-- a tie up could make sense.

They're both trying to get premium advertising.

Are they starting to overlap?

You are starting -- absolutely right.

Programmatic advertising.

With that sort of coming to the fore, the coming more of a factor, all of the display ad skies are going to get in each other's face, quite literally.

Why not team up?

Make it more efficient.

That might make growth better in the future.

Then who runs the company?

They're both superstars in the media-tech world.

Both former googlers.

They must talk to each other.

They likely are talking about partnerships and everything.

There in the same circle.

What about tim armstrong masterfully exiting his way out of patch?

Oh my gosh this.

For almost a year before that, he kept from sin by the end of 2013 that patch would become a profitable business.

He kept losing money on it.

He got a turnaround.

It will no long to be on aol's books.

That was a good sign.

That was what you wanted.

It was responsible.

Why couldn't they make that work?

It had over 1000 people running 900 sites.

They had to cut staff to 500. they're cutting staff again to even half that.

There are 200 or 300 staff.

The localized content -- why did a non-work with advertisers?

-- did it not work with advertisers?

They had not enough salespeople on the ground selling advertising.

The cannot catch up and get to the goal.

The other aspects of aol which have been interesting -- adapttv.

Has been working out really well for them.

What about gravity?

This plays into tim armstrong possible content premium publishing strategy.

Gravity is going to help them draw in more users, think of aol as a content destination.

I think they want to be a kind of publisher almost.

I think there was an element of that to the gravity.

I thought it was interesting what tim was saying about the content he wants to beef up, including content geared towards women.

Did you agree with him that there isn't as much out there for women on the internet?

There was enough out there for everybody.

I think his point, which i do agree with, is defined destinations.

Were you know women are going to want to go.

Advertisers are always

This text has been automatically generated. It may not be 100% accurate.

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