Verizon is thinking about buying Yahoo, and AOL boss Tim Armstrong is leading talks (YHOO, VZ)
AP
AOL CEO Tim Armstrong will be reaching out to Yahoo on behalf of Verizon for a possible acquisition, Bloomberg's Scott Moritz and Brian Womack reported on Monday.
The report said that Armstrong is reaching out "informally" and will act on behalf of AOL's parent company, Verizon, whose CEO, Lowell McAdam, expressed interest in possibly buying Yahoo during CNBC Jim Cramer's "Mad Money" last week.
There haven't been any formal talks at this point between the two companies, but Armstrong is "taking a lead in preliminary discussions," the report added.
McAdam strongly hinted that his company was interested in a Yahoo deal during Friday's "Mad Money," saying, "We have to understand the trends. But then at the right price, I think marrying up some of their assets with AOL and the leadership would be good."
Yahoo said during its earnings call last week that it would explore a possible sale of its core internet business, when it said in a statement that it would engage in "qualified strategic proposals." The company lowered its guidance in its latest quarterly earnings and is under pressure by activist investors to make significant changes, including a sale of its core internet business.
Verizon has been making a strong push to expand its go90 online video-streaming service lately, and Yahoo's got a ton of web traffic that theoretically would make the two companies a good fit for each other. The two were reportedly in talks for a potential deal in 2014 as well, before AOL was acquired by Verizon.
Verizon wasn't immediately available for comment.
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