Yahoo - Deal or no deal

Overshadowed by Google, CEO Terry Semel needs to make a move. Now he’s flirting with Time Warner about buying America Online - essentially trying to jump-start talks that broke down a year ago.

If AOL rebuffs him, Semel has other dealmaking options. The former co-chairman and co-CEO of Warner Bros. has a big ass checkbook available for acquisitions. (Yahoo’s market value is $35 billion, and it has about $3 billion in cash and securities.) A Yahoo purchase of Facebook for as much as $1 billion has been rumored for weeks.

In all circumstances Yahoo must get in gear - and I’m looking forward to next big acquisition.