Starboard Letter Urges Yahoo Combination With AOL

Starboard, a hedge fund manager, has urged Yahoo to merge with AOL, citing issues with Yahoo's value and the need for cost-cutting and asset monetization. Verizon's interest in AOL adds urgency to Starboard's push. The potential AOL-Yahoo merger is seen as transformative, focusing on programmatic ad technology, unlike a smaller-scale AOL-Verizon deal. Leadership questions arise, with Tim Armstrong interested in leading the merged entity.

What potential benefits could arise from a Yahoo and AOL merger compared to a partnership with Verizon?

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What challenges might arise regarding the leadership of the merged company?

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