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Starboard reiterates Yahoo should combine with AOL

Published 01/08/2015, 09:53 AM
Updated 01/08/2015, 10:00 AM
© Reuters. Yahoo CEO Marissa Mayer speaks during her keynote address at the annual Consumer Electronics Show (CES) in Las Vegas

(Reuters) - Yahoo Inc shareholder Starboard Value LP reiterated that the company should explore a combination with AOL Inc and cut costs to improve profits.

Yahoo's number one priority must be to monetize its investments in Alibaba Group Holding Ltd and Yahoo Japan Corp, the activist investor wrote in a letter to Yahoo's board on Thursday.

Starboard, which first expressed similar views to Yahoo in September, disclosed a 7.7 million share stake in Yahoo and a 1.9 million share stake in AOL in November.

Yahoo's shares were up 1.4 percent at $49.28, while AOL was up 3 percent at $47.52 in early trading on Thursday.

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