FOX Chicago news released a story today disscussing the future of the internet sensation Yahoo!. AOL Inc, and various other equity firms are looking into the possibility of buying Yahoo Inc. Among those equity firms are Silver Lake Parnters and Blackstone Group LP.
Perhaps the spark of this interest in Yahoo Inc has been the rise in it's stock. "Shares of Yahoo jumped 5.7 percent to $15.25 on Wednesday in one of the highest volume days of the year." AOL Inc's market is not as large as Yahoo Inc's and the combination of the two could be very profitable for AOL.
This story reminds me of my previos blog about media consolidation. It seems like many media companies are trying to make the merge into larger conglomerates where they control multiple aspects of the industry. This will maximize profit, so I understand the motives of these companies. However, I wonder if this is in the best interest of the public and I wonder if the FCC should look into what these companies are doing. We do not want these companies to start controlling whole aspects of the industries. We don't want these companies turning into monopolies.
I still consider companies that are trying to control every aspect of thier particular industry a threat, even though that is not the definition of a monopoly. AOL joining with Yahoo is a great idea for AOL, but is it a great idea for the public?
Thanks for reading
Information from: AOL, Private-Equity Firms Explore Offer to buy Yahoo
