After the release of a report by the Wall Street Journal that talks between internet giant Yahoo! Inc. (YHOO) and diversified entertainment heavyweight Time Warner Inc. (TWX) have picked up, shares of Yahoo climbed to the upside Thursday morning.
Yahoo stock advanced about 3%, rallying 50 cents to $21.39 a share by 10:55 am Eastern Time. Shares of the Sunnyvale, California-based company reached an intraday high of $21.75 per share as they added onto Wednesday's gain.
According to the Wall Street Journal, the companies are discussing an arrangement in which Time Warner would merge its AOL unit with Yahoo and then take a minority stake in the joint venture. The structure in these reported talks is similar to a deal the two firms had previously discussed in April.
These discussions come as Yahoo continues to experience pressure to elevate returns for its shareholders. Major shareholder Carl Icahn has been heavily pressing the company to make a merger deal to maximize shareholder value, going as far to push for the removal of CEO Jerry Yang. Icahn also plans to present an alternative slate of directors at the firm's annual shareholder meeting in early August.
The news of the possible collaboration comes shortly after reports that Microsoft Corp. (MSFT) is looking into the possibility of trying to make another attempt to acquire Yahoo after pulling its $47.5 million offer to purchase the company off the table in May.
Meanwhile, the Journal is also reporting that News Corp. (NWS) has been keeping a close eye on the Yahoo situation. However, according to the Journal, the interest is more about monitoring the situation rather than looking to strike a deal of its own.
Yahoo also recently announced some plans to reorganize its internal infrastructure. With the objective of improving its products, technologies and execution, Yahoo in late June revealed the formation of three new teams - Audience Products Division, U.S. region, Insights Strategy - reporting to President Sue Decker. The company said the changes would centralize consumer product development and improve coordination between product and engineering teams.
Around the same time, Yahoo issued a statement to justify its action of going ahead with the search advertising deal with arch rival Google Inc. (GOOG), saying it is far better than Microsoft's search-only hybrid proposal based on all the key factors such as strengthening Yahoo's competitiveness, protecting its strategic position and generating attractive financial returns.
In a letter to shareholders, Yahoo Chairman Roy Bostock and CEO Jerry Yang said the Google agreement would do more for shareholder value than Microsoft's search-only hybrid proposal.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.