New York – The CEO of AOL has been meeting with some of the company’s largest shareholders in recent days trying to drum up support for a possible sale to Sunnyvale-based Yahoo, Reuters reported.

Citing sources with knowledge of the situation, the news service said that Tim Armstrong believes a merger could save the companies as much as $1.5 billion in expenses from overlapping data centers and news sites.

Armstrong reportedly is touting the notion that a deal would help the combined company better compete with powerhouses like Google in the market for online ads. Rumors about a possible AOL-Yahoo tie-up have swirled for several months, though Yahoo reportedly has cooled on the idea.

AOL in August reported an 8% drop in second-quarter revenue and a net loss of $11.8 million, despite posting its first increase in ad revenue since mid-2008.

This article was also published in Bay Area Tech Wire.

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