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Friday 26 September 2014

Yahoo, AOL Pushed Toward Merger By Fed Up Activist Investor

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The Alibaba IPO dominoes are falling — and Yahoo and AOL may be next in line.
A week after Yahoo YHOO +4.39% shares plummeted when the company’s stake in China’s ecommerce powerhouse didn’t pan out as high as some expected, the web portal is back up on Friday after activist investor Starboard Value urged Yahoo CEO Marissa Mayer and the board to talk with rival and oft-cited potential merger partner AOL AOL +3.68%.
Starboard “believes a combination between Yahoo’s Core Search and Display Businesses and AOL Could Result in up to $1 Billion of Synergies While Also Potentially Facilitating the Realization of Value from Yahoo’s Non-Core Equity Stakes.” Here are the four opportunities Starboard wants Mayer to pursue: read more

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