We blogged late last week that Yahoo had dropped out of the running for a piece of AOL. More details about what caused the discussions to end this WSJ article (sub required) by Julia Angwin and Kevin J. Delaney.
Talks between Time Warner Inc. and Yahoo Inc. over Yahoo's possible purchase of a stake in the America Online Internet division foundered on a series of issues, including Time Warner's desire not to give up majority control of AOL and its unwillingness to accept an Internet stock as payment for a stake, according to people close to the discussions.
While Yahoo disputes whether there ever was a serious discussion of terms, a person close to the Time Warner side who was briefed on the discussions says Yahoo had proposed swapping 20% of Yahoo for 80% of AOL's content business. A Yahoo spokeswoman contests that, saying Yahoo never made an offer to Time Warner.
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