AOL and Yahoo Merger?

Last month, we spoke of the talk of merger between AOL and Yahoo. This rumor continues to have life as more is being written. Today's WSJ is examining the opportunity further. "Why get all hot over the prospect of an AOL/Yahoo merger? As The Journal notes, analysts say it could create a strong competitor in the market for online display ads -- a market that is expected to total roughly $20 billion worldwide this year, and could reach $50 billion over the next few years." With Google maintaining a healthy lead in market share, a merger may be necessary to gain some yardage in this foot race.

Is there synergy in such a merger? Will additional cost efficiencies or revenue projections improve as a result of this partnership? Frankly, I wonder if it will only show the overlap of usage and incremental market share will not be uncovered. What is missing is innovation. Partnership is needed with the right parties. Build the better mousetrap and users will move over to you. Google can be beaten.