Yahoo - AOL > The Talks are still on….

After facing dimming prospects for a takeover by Microsoft, Yahoo is continuing discussions to buy AOL business from Time Warner. For the past few weeks , both, Yahoo and Time Warner Executives have met and headed towards the discussion of terms and conditions. Time Warner would hand over AOL's advertising business to Yahoo in exchange for a stake in the combined company. A deal would bolster Yahoo's position in the market for so-called display advertising and add subscribers for services such as e-mail and instant messaging. Yahoo and AOL would need to cut as many as 3,000 jobs for the deal to pay off, said Jeff Lindsay, an analyst at Sanford C. Bernstein in New York.