Yahoo, AT&T Marriage In The Offing?

Yahoo stocks plunged Friday after a Wall Street Journal article suggested that Yahoo and AT&T were breaking their Internet access partnership, a move that would, it was thought, dump $250 million from Yahoo's revenue stream. Both companies issued a statement reaffirming their commitment to one another, renewing speculation about a potential merger.

Already struggling with disappointing share prices after acknowledging structural shortcomings, Yahoo saw its shares drop by five percent Friday. Also illustrating the power of the Journal over stocks, the multi-authored
Yahoo CEO Terry Semel was a little more verbose: "Our landmark, strategic partnership set the standard and has given Yahoo! and AT&T the opportunity to create truly innovative offerings for consumers and advertisers. AT&T and Yahoo! have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties."

That common goal, according to WSJ blogger