Report: Microsoft Talking To TW About Combining AOL And MSN

You never know which reports will pan out … after all, this time last week eBay-Skype sounded off the wall. Today’s hot topic: a NY Post report (reg. req.) that Microsoft and Time Warner are in advanced talks that could result in the Redmond company owning a stake in AOL and combining it with MSN. Reuters/MSN | Bloomberg | MKTW |

– From Tim Arango’s NY Post report, which hinges on two unidentified “sources familiar with the matter”: “Under the plan being considered, Microsoft would pay some money to Time Warner for the AOL stake, leaving the two companies approximately equal partners in the venture. While the deal could fall apart, the companies are hopeful they can wrap it up within the next couple of months. … the media giant has also had discussions with both Yahoo! and Google over a sale or venture with AOL, according to a source close to Time Warner.”

– The story also mentions Time Inc., the venerable publishing unit, as a sale or spin-off contender if its performance doesn’t improve.

More to come.

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Dick Parsons, Time Warner & The Vision Thing

Full coverage in our archives: AOL | Time Warner | Microsoft

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