Yahoo Shareholders Seeking Merger With AOL

Two major Yahoo! Inc. YHOO shareholders are asking AOL Inc. AOL CEO Tim Armstrong to consider a merger of the two companies, according to Reuters. The shareholders are reportedly unhappy with Yahoo CEO Marissa Mayer and would like Armstrong to head the combined company. Two major AOL shareholders also reportedly met with Armstrong recently, to discuss a potential deal with Yahoo. They believe a combination could yield up to $1.5 billion in cost savings. Yahoo shareholder Starboard Value LP, has pushed for a deal with AOL, including a spinoff of some of its assets. Starboard did not speak to Reuters. AOL and Yahoo declined comment on the report. Yahoo closed Tuesday at $49.05, a loss of $0.36, while AOL gained $0.59,to close at $45.23.