Last week I said that IAC/Interactive should buy AOL to merge its user base with Ask.com.  Today I ran across an article at SeekingAlpha that referenced talk of an AOL/Yahoo merger and the implications that deal would have on Google.  And other than the fact that the idea of a Yahoo/AOL merger is half wrong, I agree that it would be a beneficial acquisition for someone.  Just not for Yahoo.

In fact, I'll go one step further and say that even Microsoft would be a better candidate for an AOL purchase/merger than Yahoo.  And I think Microsoft would be allowed to buy AOL, given AOL's rather lousy brand image these days.  I agree with the article linked to from the SeekingAlpha post, too:  an AOL purchase could be profitable within two years.  Just not for Yahoo.

Yahoo isn't in a good position organizationally to merge with another company right now unless it is the company being bought.  Yahoo has enough problems these days without adding the problems of another company to those.  Yahoo would be one of the last companies that I'd say should acquire AOL.  Another company in a better situation should do the honor of taking over AOL.

Just not Yahoo.