NEW YORK (

TheStreet

) --

AOL

(AOL)

has hired financial advisers to explore strategic options for the company, one of which includes a possible tie-up with

Yahoo!

(YHOO)

, the

Wall Street Journal

reports, citing people familiar with the matter.

AOL, which has held previous merger talks with its bigger rival, hasn't reached out to Yahoo! with a formal proposal, the newspaper reports.

AOL advisers in recent days have been presenting different scenarios to AOL officials that illustrate how the two companies could be merged, the

Journal

reports.

AOL has been encouraged by what it perceives as a Yahoo! board that is more open to discussing strategic tie-ups, people familiar with the matter said.

AOL also is exploring other options for future growth, the people said.

A deal between AOL and Yahoo! would be difficult, the people said, because of the complexity involved with having to spin off Yahoo!'s Asian assets, the

Journal

reports.

-- Written by Joseph Woelfel

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Joseph Woelfel

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