AOL INC. (AOL)

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AOL's Armstrong Reportedly Wants To Sell To Yahoo

Eric Savitz Eric Savitz Forbes Staff

From the department of weird ideas: AOL CEO Tim Armstrong is apparently out peddling the idea that the company could sell itself to Yahoo. Question is, what makes him think Yahoo is buying?

Reuters is reporting that Armstrong has been meeting with shareholders in recent weeks pushing the notion that an AOL/Yahoo combination could result in up to $1.5 billion cost savings from eliminating duplicate data centers and other synergies. The report is attributed to “sources with knowledge of the discussions.” Yahoo, of course, is itself shopping for strategic alternatives, and the subject of widespread speculation. The company also lacks a CEO after giving the boot to former chief Carol Bartz.

You would also presume that Armstrong might like the idea of filling Yahoo’s vacant CEO post.

In late trading, AOL jumped 39 cents, or 3%, to $13.54.