AOL Chief Executive Tim Armstrong is pitching to the company’s shareholders that it would be a good idea to sell to Yahoo, Reuters reports.
The companies could save $1.5 billion in costs by merging, Armstrong has been telling shareholders, according to the story.
Armstrong has reportedly been presenting the idea as an alternative to remaining a stand-alone Internet company. Cost savings would come from eliminating duplicate data centers and news sites focused on entertainment or finance, for example, the story says.
Yahoo is currently undergoing its own strategic review. The two companies had many overlapping shareholders as of June 30, including Capital Research, BlackRock and Vanguard, the story notes.
AOL declined to comment, the piece adds.