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AOL Planning Super Merger With Yahoo?

Two of the biggest names on the internet, AOL and Yahoo, may soon become one entity if AOL succeeds in breaking up the company as planned.

Sources "close to the plans" told Reuters that AOL has yet to make a formal proposal to Yahoo (ed : and chose instead to use a third party like the press to do it for them).

Not surprisingly, the rumour caused both shares of both AOL and Yahoo to rise as the two brands have been struggling over the last few years to compete with the likes of Facebook and Google.

The deal would see AOL spin off its money-making AOL dial-up business which apparently brings in more than $1 billion, around 40 per cent of the company's annual revenue.

Analysts say that Yahoo and AOL are complimentary businesses since they tend to attract a different audience and their strengths lay in different places.

Should the merger go ahead, "Yahol" may become the biggest online property on the web, edging both Google and Facebook; 2011 could be very interesting.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.