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'It's a non-factor' states AOL CEO Tim Armstrong over Yahoo merger reports

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By Stephen Lepitak, -

October 2, 2014 | 2 min read

AOL does not plan to merge with Yahoo despite reports, Tim Armstrong has said.

The AOL chief executive refuted speculative reports over a possible merger of the two media companies after he was spotted meeting with Yahoo boss Marissa Mayer.

Speaking to Publicis CEO, Maurice Levy as part if an interview during Advertising Week New York, Armstrong explained that Mayer's husband was also present during the meeting and that they were discussing raising children.

The pair were talking after investor Starboard Value sent a letter to Mayer to recommend a merger with AOL in order to increase shareholder value.

"Candidly and clear, the letter that came out was Starboard and Yahoo was between them and if you want my honest take on it, AOL is a sideshow as to what that whole situation is about. I haven't given it much thought because we are super busy doing what we are doing at AOL and press speculation about it, for what we spend our time doing every day, it's a non factor."

Last week, Mayer released a statement to acknowledge the letter, where she stated: "As part of our regular evaluation of Yahoo's strategic initiatives to drive sustainable shareholder value, we will review Starboard's letter carefully and look forward to discussing it with them."

Following news of the letter, shares in both companies rose by single figures.

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