Yahoo, AOL shares rise on renewed merger calls

SUNNYVALE, Calif. (KGO) -- Pressure is growing for Yahoo to buy AOL. Shares of both companies shot up Thursday after a key shareholder urged Yahoo CEO Marissa Mayer to purchase AOL.

Starboard Value Chief Jeff Smith says he's increasingly concerned with Yahoo's acquisitions of cable companies. Smith says Yahoo should focus on acquiring struggling media company AOL instead.

He estimates a merger would save the combined companies an estimated 1 to 1.5 billion dollars.