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Yahoo Begins Due Diligence On AOL Merger

Law360 (October 30, 2008, 12:00 AM EDT) -- Facing increasing pressure over its proposed advertising deal with Google Inc., Yahoo Inc. has reportedly begun examining the possibility of a merger with AOL LLC.

The two Internet companies started the due diligence process a couple weeks ago and executives from both AOL and Yahoo met last week, though a deal remains far from certain and would bring with it "a lot of risk," Reuters reported Wednesday, citing an anonymous source familiar with the discussion.

Talks between Yahoo and AOL's parent company, Time Warner Inc., began...
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