Speculation that Yahoo could consider buying AOL gives a new angle to the Yahoo-Microsoft saga that has been unfolding over the last few days.
Yahoo yesterday turned down Microsoft's $44,6-billion bid to buy out the Internet search company.
Microsoft had offered $31.00 per share, but Yahoo is holding out for $40.00.
The latest twist, however, has the Times on London reporting on a possible tie-up between Yahoo and AOL, which could give shareholders a comfortable alternative to the Microsoft deal.
Microsoft, meanwhile, has asked Yahoo to reconsider its offer and may go hostile in an attempt to take over the company.