Yahoo, AOL In Due Diligence Talks?

It’s the thing that would not die. Reuters is reporting that Yahoo and AOL have been spending time rummaging through financials, such as they are, to determine values and see where a merging of the two veteren Internet companies might make economic sense. It’s grand theater as discussions between the two continue with Microsoft playing coy in the interminable merger discussions surrounding Yahoo.  Yahoo rejected advances by Microsoft in the Spring and opened discussions with Time-Warner as a defence against any moves by Redmond but some observers believe that a merger of the struggling Yahoo with the foundering AOL would only create the Internets first egg laying woolly milk pig.