Report: Armstrong wants a Yahoo/AOL deal, but Mayer not a fan

|By:, SA News Editor

Tim Armstrong would "dearly love" to merge AOL (AOL +2.1%) with Yahoo (YHOO +0.8%), and has (in "sideways ways") brought it up to Marissa Mayer and others, sources tell Kara Swisher.

However, while many at both companies see value in a deal, given content, video, and ad synergies, Mayer reportedly considers it "small, unexciting, uninspiring and backward-looking."

Mayer would, however, like to buy the Huffington Post. But Armstrong is said to be uninterested in selling the site by itself.

The report follows a Sun Valley talk between Mayer and Armstrong that fueled speculation the CEOs were talking about a deal.

Yahoo's Q2 report arrives tomorrow. The Street is hoping some clarity will be given on Yahoo's plans for its Alibaba IPO windfall.