AOL to be merged with Yahoo!

Rumors rounding the Internet is that Yahoo! is going to merge with AOL the American Internet portal baggies, the next year (2007).But another report by imediaconnection is speculating that both AOL and Yahoo! will be acquired by some other company, most probably our software giant from Redmond, Washington.With Time Warner considering to sell AOL no one is sure about the future of AOL.

A Merrill Lynch analyst report has been came out in which they speculate that both AOL and Yahoo! are ready for a “transformation transaction in the coming 12 to 24 months.”After Google bought Youtube Fortune magazine mentioned this rumor back in October describing the merger of AOL with Yahoo! to impress the Wall Street.

So, what will happen  this story becomes true?.The userbase will multiply by manifold the product portfolio of Yahoo! (or Microsoft?) will increase at a rocket speed.As both companies (AOL, Yahoo!) are facing Investors who are doubtful about the companies competency with other Internet bigwigs like Google and Yahoo.

As the Web2.0 space becomes crowded with companies that do exactly the same thing (called clones), if a move like this happen to the classic companies of the Internet bubble, I am sure that a we will see a new era of application integration.Think about Microsoft, Yahoo! and AOL integrating their services each other that will create an immense pressure on rivals like Google.So I am adding Google (hey! they have lots of cash)also too to the list of possible acquirers of Yahoo! and AOL

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