“AOL tried to either get enough backing to make a run at Yahoo, or get Yahoo interested in buying it,” the source says. “Yahoo didn't bite, and AOL didn't have its ducks lined up to be a buyer," Matthew Flamm reports.
After being spun out of Time Warner, AOL has struggled to gain full traction. And its share of the online advertising pie has shrunk as well, predicted to be down 26 percent this year, despite a spike in online ad sales, nationally.
Ruling out this parternship/rumor would be unwise, as both companies continue to find their voice and purpose in the great, new ether.