Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yahoo! Inc. (YHOO) Could Have A Ruby In Its Hat With Tim Armstrong’s AOL, Inc. (AOL)

Yahoo! Inc. (NASDAQ:YHOO) has been on the lookout for a merger that will pull it out from its growth troubles, and as proposed by Starboard Value, AOL, Inc. (NYSE:AOL) might have just the right gravitational pull that Yahoo is seeking. Tim Armstrong, AOL, Inc. (NYSE:AOL)’s CEO and the biggest shareholder of the company discussed Starboard’s pressure on Yahoo! Inc. (NASDAQ:YHOO) to merge with his company, on CNBC.

Large put purchase at AOL; Express calls look for retailer to rebound

While Armstrong hesitated to discuss the details of a possible deal between the two companies as it involved other parties as well, he did highlight the strengths of AOL, Inc. (NYSE:AOL) in the interned based tech industry.

“[…] You know I think the interesting thing in the industry right now overall is that you have giant dynamics happening and scale matter a lot. That part of the reason we at AOL, Inc. (NYSE:AOL) went to number four in terms of traffic in US this year, pumped up a spot, we have done really well in news, we are number 1 in global news, top three in video, top three in programmatics […],” said Armstrong.

Yahoo! Inc. (NASDAQ:YHOO) will be more than lucky to have AOL, Inc. (NYSE:AOL) in its portfolio, the presence of which could be likened to a precious ruby as it will help to bring down substantial costs for both the companies through synergies. However, AOL, Inc. (NYSE:AOL) might not be too happy to be in that hat, or any hat for that matter. Furthermore, the company could be looking to add a less precious jewel in the form of Yahoo! Inc. (NASDAQ:YHOO) to its own hat.

At this point it’s mostly speculations that revolve around this merger issue, but what is clear is that although the deal will be beneficial for both companies, it will not be easy to get one company to cave in to the other’s pressure and have a subordinate role. Yahoo! Inc. (NASDAQ:YHOO)’s CEO Marissa Mayer is a strong minded women and doesn’t cave in to pressure easily as highlighted by the Dan Loeb episode last year.

Disclosure> none

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!