The Wall Street Journal is reporting that AOL and several venture capital firms are in talks to buy Yahoo.

Silver Lake Partners and Blackstone Group are rumored to be in on the deal. Currently, AOL’s market value is around one tenth of Yahoo’s.

Rumors that the two companies were in talks to merge have been swirling around for at least a few days, and still others say it’s Yahoo who is looking to buy AOL; but neither company is willing to make an official statement at this time.

Yahoo personnel haven’t yet been involved in these discussions, according to WSJ’s sources. Because of the intricacies involved in such acquisitions, Yahoo may never be formally approached with an offer.

Yahoo itself instituted “poison pill” mechanisms back during its apex in 2001 to prevent the threat of a hostile takeover — which became a very real possibility two years ago when Microsoft issued an unsolicited bid to buy the company.

Nevertheless, these new rumors are interesting ones. What do you think of AOL’s ambitions, especially in light of that company’s recent acquisition spree involving tech blog TechCrunch, app maker Thing Labs and video network 5min?

More importantly, do you think an alliance between these two fading powerhouses from the dotcom era could create a more vital, competitive organization? Let us know what you think in the comments.

Source: Mashable

AOL TO ACQUIRE TECHCRUNCH NETWORK OF SITES

Leading Authority on Tech News Will Expand AOL’s Growing Offering of World-Class, Audience-Relevant Content

San Francisco, CA, September 28, 2010 – AOL Inc. [NYSE: AOL] today announced that it has agreed to acquire TechCrunch, Inc., the company that owns and operates TechCrunch and its network of websites dedicated to technology news, information and analysis. TechCrunch and its associated properties and conferences will join the AOL Technology Network while retaining their editorial independence, further bolstering AOL’s position as one of the world’s leading providers of high-quality, tech-oriented content. The announcement will be made on stage at TechCrunch Disrupt in San Francisco, CA.

Founded by Michael Arrington, TechCrunch operates a global network of dedicated properties from Europe to Japan, as well as vertically-oriented websites, including MobileCrunch, CrunchGear, TechCrunchIT, GreenTech, TechCrunchTV and CrunchBase. The TechMeme Leaderboard ranks TechCrunch as the No. 1 source of breaking tech news online, followed by AOL’s Engadget.*

“Michael and his colleagues have made the TechCrunch network a byword for breaking tech news and insight into the innovative world of start-ups, and their reputation for top-class journalism precisely matches AOL’s commitment to delivering the expert content critical to this audience,” said Tim Armstrong, Chairman and Chief Executive Officer of AOL. “TechCrunch and its team will be an outstanding addition to the high-quality content on the AOL Technology Network, which is now a must-buy for advertisers seeking to associate their brands with leading technology content and its audience.”

Heather Harde, Chief Executive Officer of TechCrunch, said: “TechCrunch and AOL share a motivating passion for quality technology news and information, and we’re delighted about becoming part of the AOL family. This represents a compelling opportunity to extend the TechCrunch brand while complementing the great work of sites like Engadget and Switched. Our contributors, and our audiences, can look to the future with excitement about what we can build when we have the significant resources of AOL behind us.”

Michael Arrington, Founder and Co-Editor of TechCrunch, said: “Tim Armstrong and his team have an exciting vision for the future of AOL as a global leader in creating and delivering world-class content to consumers, be it through original content creation, partnerships or acquisitions. I look forward to working with everyone at AOL as we build on our reputation for independent tech journalism and continue to set the agenda for insight, reviews and collaborative discussion about the future of the technology industry.”

TechCrunch also hosts industry-leading conferences and events, including The Disrupt series, The Crunchies Awards and various meet-ups worldwide. These conferences bring together industry innovators, entrepreneurs and financing sources to exchange ideas, forge new relationships and discuss the current and future industry trends.

“Engagement with thought leaders is as important to AOL as our engagement with our contributors, audiences, publishers and advertisers, and TechCrunch’s conferences and websites will give us a promising, additional springboard to join and amplify these conversations. We’re committed to quality in everything we do at AOL, and look forward to working with Heather, Michael and the TechCrunch team to extend the brand,” said David Eun, President of AOL Media and Studios.

The AOL Technology Network consists of AOL’s tech-oriented properties including Engadget, the Web magazine about everything new in gadgets and consumer electronics; Switched, which covers the intersection of the digital world with entertainment, sports, art, fashion and lifestyle; TUAW, the unofficial Apple weblog; and DownloadSquad, the weblog about downloadable software and other computer subjects. The AOL Technology Network ranks in the top five for tech news according to comScore Media Metrix, August 2010 data, and leads the top five in average time spent and average visits per user.

This acquisition will further AOL’s strategy to become the global leader in sourcing, creating, producing and delivering high-quality, trusted, original content to consumers. TechCrunch will remain headquartered in San Francisco, CA, as a wholly owned AOL unit. Deal terms were not disclosed.

Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding business strategies, market potential, future financial and operational performance and other matters. Such forward-looking statements include, but are not limited to, statements regarding the anticipated benefits of the transaction and other statements identified by words such as “may,” “will,” “intend,” “should,” “expect” or similar expressions. These statements are based on management’s current expectations and beliefs, and are subject to uncertainty and changes in circumstances, including, but not limited to, the satisfaction of the closing conditions to the transaction and the parties’ performance of their obligations under the agreements; changes in our plans, strategies and intentions; the competitiveness and quality of our products and services; our ability to retain, hire and develop key employees; and the intensity of competition. Any forward-looking information is not a guarantee of future performance and actual results may vary materially from those expressed or implied by the statements herein, due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, as well as factors affecting AOL’s operations and businesses. More detailed information about these factors as they relate to AOL may be found in the section entitled “Risk Factors” in AOL’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission. AOL is under no obligation to, and expressly disclaims any obligation to, update or alter the forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise.

About AOL

AOL Inc. (NYSE:AOL) is a leading global Web services company with an extensive suite of brands and offerings and a substantial worldwide audience. AOL’s business spans online content, products and services that the company offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing valuable online advertising services on both AOL’s owned and operated properties and third-party websites. In addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as a valuable distribution channel for AOL’s consumer offerings.

About TechCrunch

TechCrunch is a weblog dedicated to obsessively profiling and reviewing new Internet products and companies. In addition to covering new companies, we profile existing companies that are making an impact (commercial and/or cultural) on the new web space. TechCrunch has now grown into a network of technology focused sites offering a wide range of content and new media.

Source: TechCrunch

AOL, the New York-based online media company, is on the verge of acquiring TechCrunch, the online blogging network started by former attorney, Michael Arrington. The deal is at a sensitive stage and might fall apart yet, but I don’t think so. Sources familiar with both entities says that the announcement is likely to come onstage at Disrupt, TechCrunch’s flagship conference currently underway in San Francisco.

AOL CEO Tim Armstrong is likely to make an appearance at the conference, and perhaps that’s when the announcement is likely to be made. Michael Arrington was unreachable for comment, and AOL has not returned my calls. I still don’t know the terms of the deal, and will update the post accordingly.

AOL in the past had acquired Weblogs Inc., the blogging company behind popular sites such as Engadget. Those blogs have helped AOL compensate for steep loss of traffic. The service has been in the market to buy a technology blog, and is rumored to have been linked with other technology blogs.

On a more personal note, I think this is great news for Mike and his crew. I remember Mike starting out by writing long reviews of web startups in 2005. We often talked about the world of technology and discussed where it was all headed. In the years that have passed, he turned his blog into a company and brought in Heather Harde to run his operation. The company has launched series of events, with TechCrunch SF being the latest. I want to congratulate Mike and his crew on their success.

Source: gigaom

Gmail

Good thing Gmail is out of beta. It is now the third largest Web mail service in the U.S. In July, Gmail nudged past AOL Email with 37 million unique visitors compared to 36.4 million for AOL, according to comScore estimates. (Gmail is the orange line in the chart below). That puts Gmail within sight of the No. 2 player, Windows Live Hotmail, which has 47 million unique visitors. After that there is a wide gulf separating Yahoo Mail and its 106 million monthly unique visitors.

The last time checked on Gmail’s progress was at the beginning of the year, when it seemed like it would still take at least two years for it to catch up to its nearest rivals. But so far this year, Gmail’s unique visitors grew 25 percent, while AOL’s declined 22 percent. Thus, the two crossed paths in July. (Hotmail grew only 8 percent during the same period, while Yahoo Mail increased unique visitors by a healthy 16 percent).

If Google wants Gmail to pass Hotmail quickly and gain the No. 2 spot, my suggestion is to keep pumping in new enhancements through Gmail Labs and to speed up the pace at which mail storage increases. Not that I am a typical user, but I am already at 97 percent of my allotted 7,358 megabytes. One of the primary lures of Gmail has always been its seemingly endless and ever-expanding storage limits. Please don’t make me pay for more storage.

Source: TechCrunch

Continuing its quest to bridge the world’s of broadcast television and the Web, Syndicaster is adding several online distribution options for local TV stations, including the ability to publish video clips to YouTube, AOL (via Brightcove), Yahoo and other sites. Syndicaster is an online editing and video-clip management service that allows TV stations to any broadcast news clip and repurpose it for the Web by publishing it to their own Websites or through its sister service ClipSyndicate (both Syndicaster and ClipSyndicate are divisions of Critical Media).

Now Syndicaster is adding one-click distribution options to the major video sites so that local TV affiliates or station groups can post their videos to AOL Money & Finance or their YouTube channel, and manage it all from one place. One feature that TV customers will appreciate is the ability to set embargo windows for each service, allowing a TV station to publish hot news immediately to its own site, then 24 or 36 hours later to video partner sites where it makes the most money, and then maybe finally to YouTube.

Syndicaster has also recently added an on-location feature which allows TV reporters and crews to upload clips directly from wherever they are capturing the footage, and making that footage available as Web video clips even if it never gets airtime. Affiliated stations can also go to Syndicaster to find footage and use it either on the Web or on-air, depending on their arrangements with each other. When that airplane crashed in Buffalo, NY recently, a local station put all of its footage on Syndicaster, and other affiliated stations around the country used it to grab video footage for their own on-air reports.

Syndicaster charges a flat subscription fee of about $850 a month per TV station or news organization. With 60 paying customers, that comes to about $50,000 a month a few months after launch, with a lot of runway for growth. Syndicaster is exploring ways to bring its online editing and video distribution platform to consumers, but so far it is stumped in that area. CEO Sean Morgan admits:

Look, I don’t know how to make money on the consumer. I’d like to make money on this. We are getting great traction from broadcasters. Bringing it to newspapers is obviously the next path forward.

In May, the company plans to expand its reach to newspaper sites with Syndicaster for Newspapers. As news organizations of all stripes make video a bigger component of their online offerings, Syndicaster is hoping to become the industry standard for ingesting, editing, and distributing these videos. Maybe the A.P. should look into it.

Source: TechCrunch – by Erick Schonfeld

NEW YORK (Reuters) – Time Warner Inc’s AOL will launch a personal finance site on Tuesday, adding to a roster of new properties that do not bear its name.

The new site, called WalletPop.com, is a spin-off of AOL’s Money & Finance channel and will focus on consumer and personal finance. AOL Money & Finance will continue to business and investing news and tools.

The launch of another site not bearing the AOL brand is part of a plan to create new online businesses courting younger audiences unfamiliar with a company whose heyday ended with the popularity of high speed Internet access.

TMZ.com, a celebrity entertainment site created by AOL and a unit of Warner Bros, added 35 percent more users in May, now attracting about 9.2 million visitors monthly, according to comScore. Asylum, which the company said is now the top men’s site, attracted 2.7 million unique visitors in May.

Walletpop offers “a comprehensive, accessible, and interactive web site focused exclusively on the money matters of real people, such as debt management, finding the best deals, saving, retirement, insurance, real estate, banking, taxes and more,” Marty Moe, Senior Vice President, AOL Money & Finance said in a statement.

Walletpop’s launch follows on the heels of the July launch of BigDownload.com, a site targeting PC gamers.

Yahoo!