AOL, Yahoo Close to Merger Deal

TechCrunch is reporting that Yahoo is continuing its marathon merger discussions with AOL, and that a deal could happen as early as this month, according to sources close to the negotiations.

Apparently the deal would include AOL’s content, services, and advertising businesses—in other words, everything except the dial-up portion, which would be just fine considering that Earthlink has already indicated interest in that side of things.

If Yahoo does an AOL deal, and then continues along the Google ad agreement path as well, it gives the struggling portal a stake in the fight and proves that there is indeed another option aside from the failed Yahoo-Microsoft merger. Whether or not that option will ultimately lead to success over Google is a different question.