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Report: Microsoft in Talks for a Deal With AOL

Grant Gross, IDG News Service

Wednesday, July 16, 2008 12:30 PM PDT

Microsoft is meeting with AOL executives Wednesday to talk about the two companies combining AOL and Microsoft's online division, according to a news report.

Microsoft, spurned in its recent efforts to buy all or part of Yahoo, wants to explore ways to combine with AOL, according to the Wall Street Journal. The two companies have been discussing a possible deal for months as an alternative to Microsoft buying Yahoo, the Journal reported in its online edition Wednesday afternoon.

Representatives of Microsoft and AOL didn't immediately respond to a request for comments.

The structure of a deal between AOL and Microsoft hasn't been worked out, the Journal said.

Microsoft has made multiple offers to buy Yahoo this year. Yahoo on Saturday rejected a joint proposal from Microsoft and investor Carl Icahn that would have sold Yahoo's search business to Microsoft.

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