AOL + Yahoo = What, Exactly?

AOL is in talks with private equity firms to buy Yahoo and take on Google. The story is young and the details underdeveloped. But it's worth pointing out that Google makes it dime with search ads, and it makes a lot of dime. AOL is a struggling subscription/news hybrid and Yahoo doesn't even control its own search ad display, since it leans on Microsoft technology to power its search engine.

Here's the long-game, anyway:
A combined Yahoo-AOL would have greater scale to compete in online advertising against industry juggernaut Google Inc. While both companies draw huge amounts of users, their advertising businesses have struggled as they've faced competition from a range of websites. The scenarios being discussed are similar to ones financial firms have discussed before. Yahoo and AOL discussed a merger in 2008, as Yahoo weighed a $45 billion takeover offer from Microsoft Corp. Microsoft eventually pulled its bid.

Read the full story at WSJ.