Activist investor Starboard Value LP said on Friday it has acquired a "significant" stake in Yahoo Inc and urged the Internet company to explore a merger with AOL Inc.Shares of Yahoo Inc rose 4.2 percent to $40.59 at mid-afternoon, while shares of AOL jumped 3.3 percent to $44.39.Starboard said a Yahoo-AOL merger could create up to $1 billion in "synergies" by reducing overlaps in online display advertising and other overhead costs. In a letter to Yahoo Chief Executive Marissa Mayer, Starboard said it was looking forward to "engaging directly" with Yahoo to discuss how its plan could be implemented in a timely manner."I don't think it will happen but I do think Yahoo is now in play. It puts more pressure on Mayer," Ironfire Capital founder Eric Jackson said, referring to a potential merger with AOL.
AOL Inc. (AOL) is a global Web services company with a range of brands and offerings, and a global audience. Shares of AOL traded higher by 3.28% or $1.41/share to $44.38. In the past year, the shares have traded as low as $32.19 and as high as $53.28. On average, 1069650 shares of AOL exchange hands on a given day and today's volume is recorded at 6149351.
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