Financial advisers have been appointed by AOL Inc. to seek various strategic options for the company. AOL has plans to tie- up with its rival firm Yahoo Inc, if possible. People aware of the matter stated these facts.

In a recent development AOL has got different pictures from its advisers that pointed out that the possibilities of the two companies combining their operations and the complexity of any such transaction could be overcome.

Previously merger talks had been initiated by AOL with Yahoo but could not some how get across to them with any formal proposal.

If AOL is convinced that the deal is feasible then the scenario can change this time as stated by sources. AOL got more inspired by its perception of the presence of a Yahoo board that is open for discussing a possible tie-up between the two firms. No formal talks have been initiated between the firms as yet.

However AOL is not just thinking of the option of combining it with Yahoo, it can go to some other direction as well as stated by people who are aware of the matter. The firm is looking for the best option that can help it to grow more in the future.

Any transaction between AOL and Yahoo will be full of complexities; they won't be less as Yahoo has many assets in Asia that have to spin off. Yahoo has stakes in Yahoo Japan as well as in Alibaba of China.

After the spin-off of the Asian assets of Yahoo, AOL might get into the online businesses jointly with Yahoo that can return capital to shareholders. These facts were given by people aware of the matter.

Under another option private equity firms can take a stake in the joint operations with a plan to pay the Yahoo shareholders, a dividend.