Biz (2586)

Rumours that Time Warner is to sell AOL

Yahoo and Microsoft could be in the running

17 July 2008 11:11 GMT / By Katie Scott

It may be getting nowhere with Yahoo, but is Microsoft currently making a deal to buy AOL off Time Warner?

Rumours are flying around the web that Time Warner is looking to sell off its internet unit, AOL.

Shares in Time Warner shot up 4.7% on the whispers.

But, to make matters more complex, it seems Yahoo may also be interested in the online business.

According to Reuters, which has the scoop from unnamed sources, a deal with Yahoo would most likely involve merging AOL with Yahoo, with Time Warner taking a minority stake in the combined company.

The sources added that any deal with Microsoft would just involve a sale of AOL.

In the meantime, both Yahoo and Microsoft are now keeping quiet after their slanging match, following on from the rejection by Yahoo of a Microsoft buy-out bid for just its search engine business.

There has also been no comment from billionaire investor Carl Icahn who is expected to try and oust Yahoo's board of directors at its annual meeting on 1 August.

Full tags

Biz, Time Warner, AOL, Yahoo, Microsoft