American Online (AOL) CEO Tim Armstrong is reportedly in preliminary talks with Yahoo officials ‘to gauge its interest in combining the companies.’
The news comes as the internet service company recently fired its CEO Carol Bartz over the phone, ending a rocky two-year run marked by stagnating growth and a bitter rift with Chinese partner Alibaba.
According to Bloomberg, Armstrong approached investment bankers from Allen & Co. who are working with Yahoo.
Yahoo announced this week that it was conducting ‘a comprehensive strategic review’ after the decision to fire Bartz, the Guardian reports.
The talks to merge the companies come in a week of controversy for both firms.
Bartz recently gave an angry interview to Fortune after being ousted, calling Yahoo's board ‘doofuses’ and claiming they had ‘fucked me over’.
According to the report, Yahoo was earlier courted by software giant Microsoft, but rejected a 47.5 billion dollar offer.
The firm was worth 80 billion dollars at that time, and now it is worth just over 17 billion dollars, the paper said.