Yahoo's board is believed to be planning fresh talks with
Time Warner about acquiring AOL.
Yahoo discussed a deal with Time Warner earlier this year, but
nothing happened.
There was speculation that Yahoo's move was
part of a strategy to fight off
Microsoft's attempt to buy Yahoo.
Microsoft also tried to buy AOL after
it failed to acquire Yahoo.
The new Yahoo board, which includes
activist investor Carl Icahn and two of his nominees, is
planning a new approach for AOL.
Yahoo recently signed a web advertising deal with Google to
boost revenues. However that arrangement - which is due to start
next month - is being investigated by regulators.