MUMBAI: AOL is in talks with bankers on the possibility of a merger with Yahoo!.

AOL chief executive Tim Armstrong has initiated talks with private-equity firms and investment bankers from Allen & Co who work with Yahoo!
  
The news comes three days after the search engine fired chief executive Carol Bartz, citing her failure to revive the fortunes of the struggling Internet pioneer in her three years stay with it.

AOL is fighting to regain its prominent role on the Internet after dramatically losing audiences when the rise of broadband connection decimated its previously dominant position as a dial-up Internet service provider. 
 
Earlier, Bartz had rebuffed Armstrong when he approached Yahoo! about a merger. But with her exit, Armstrong has revived the merger plans.