In one scenario, Bernstein Research estimated a potential deal to combine AOL and Yahoo, with a side pact to rely entirely on Google Inc for web search advertising, could top Microsoft's initial $US31-per-share offer for Yahoo. Bernstein internet analyst Jeffrey Lindsay said under that scenario, Time Warner's stock and cash offer could be worth up to $37.01 per share and eliminate up to $US800 million ($A864.02 million) in costs. "We think the AOL-Yahoo proposal is a viable alternative to Yahoo and, given the deal terms leaked to the press, could actually in a best-case scenario be more attractive," he said, but added such a deal would face big hurdles with regulators.