In one of my last articles on Yahoo (YHOO), I mentioned the ongoing campaign for merger of Yahoo and AOL (AOL) as has been proposed by a few of the top shareholders in Yahoo. Definitely, there are certain reasons including unsatisfactory performance of new CEO Marissa Mayer, Yahoo’s negligible performance in display etc. behind this proposal. Now, this push was initiated by hedge fund Starboard value LP via an activist campaign and recently, the media cited that the hedge fund has taken up a 2.4% stake in AOL. In light of these events and others, let us analyse the prospects of AOL as a worthy investment option.
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