Microsoft and AOL Eye Joint Venture
Microsoft is considering taking a stake in Time Warner's America Online unit, a move that could have significant repercussions in the competitive market of consumer Internet content and services, according to reports published Thursday.
Microsoft and Time Warner are actively discussing such a deal, reports say, although the stage of the negotiations and the nature of a subsequent partnership are being characterized in conflicting ways by different media outlets.
The New York Post, which first reported the possible deal, describes the discussions between Microsoft and Time Warner as "advanced" and involving plans to combine AOL and Microsoft's MSN Internet unit.
Meanwhile, the Wall Street Journal calls the talks "preliminary," and says they are part of a broader discussion about areas in which the companies can collaborate. Areas of collaboration being considered include AOL switching from Google's search engine to MSN's and possibly combining the two groups' advertising sales teams, according to the Journal.
Both the Post and the Journal are basing their reports on unnamed sources.
Time Warner didn't immediately return a call seeking comment. A spokesperson for Microsoft declined to comment.
