Yahoo Inc. has announced that it has withdrawn from talks over buying a stake in America Online Inc -- a daughter company of Time Warner. Yahoo's withdrawal leaves Google and Microsoft as the main contenders for the available stake.
The withdrawal, according to Yahoo's Joanna Stevens, comes after CEO Terry DSemel and CFO Susan Decker met with Time Warner last month, where Yahoo had "walked away from any interest in a deal."
According to sources close to the deal, Yahoo withdrew because of Time Warner's insistence on maintaining a controlling majority of America Online. Google may collaborate with Comcast Corp. for making an official bid on AOL. Source