I get that Yahoo could stay afloat a while longer by riding the coattails of Netflix, but what could Netflix possibly gain by the merger?
If Netflix ever proposed such an atrocity it would have to go down as one of the most boneheaded decisions in the history of business. Worse than AOL-TW. At least back then AOL still appeared to be a viable company. I think Yahoo's ship has sailed.
If Netflix decides it needs to source content, instead of only distributing it, then Yahoo has enviable assets: millions of users, deep advertiser relationships, and some homegrown content like Yahoo Autos (though no premium content).
Yahoo is most definitely a viable company. In the worst case, it needs to recast itself as a media company -- not a tech company. When compared to AOL, Viacom, the NY Times, and other "old" media companies, Yahoo is a very viable company.
If Netflix ever proposed such an atrocity it would have to go down as one of the most boneheaded decisions in the history of business. Worse than AOL-TW. At least back then AOL still appeared to be a viable company. I think Yahoo's ship has sailed.