AOL CEO talks with advisers to Yahoo following firing of Carol Bartz.

Yahoo and AolNew York: AOL chief executive Tim Armstrong is in talks with advisers to Yahoo! following the firing this week of Yahoo! chief executive Carol Bartz, who refused a previous approach, the reports said.

Citing “people familiar with the matter,” Bloomberg said that Armstrong has talked with private equity firms and investment bankers from Allen & Co. working with Yahoo!.

The financial news agency said that one scenario being considered would have Yahoo! acquire AOL and name Armstrong as chief executive of the combined company.

Yahoo! shares, which had gained 5 percent on Wednesday and another 6 percent on Thursday, inched up 0.28 percent on Friday to close at $14.48.

Bartz, an earlier chief executive of business software company Autodesk who was hired in January 2009 to engineer a turnaround at Yahoo!, was fired on Tuesday with over a year remaining on her contract.

In announcing Bartz’s departure, Yahoo! chairman Roy Bostock said that a “comprehensive strategic review” of the company was underway.

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