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Buy AOL. Swallowing AOL won't transform Yahoo, but would give it increased traffic and a shot in the arm for its search-advertising business. The real question is whether Time Warner wants to sell. "Time Warner has a new strategy for AOL and is not contemplating any deals," says a company spokesman. Citigroup analyst Jason Bazinet estimates AOL is worth about $13 billion. Of course, Time Warner might demand more.
