Deborah Yao from the AP – Comcast, Google Said in Talks Over AOL:
Comcast Corp., the country’s largest cable TV company, is teaming up with Internet search leader Google Inc. in talks about taking a stake in Time Warner Inc.’s AOL Web portal, a person familiar with the discussions said.
Comcast, Google and Time Warner are discussing a possible deal under which the three companies would form a new entity through which they would jointly own the Web portal, according to the person, who asked not to be identified because release of the information was not authorized.
The potential deal could derail separate talks that have been reported between AOL and Microsoft Corp., which is believed to be interested in an alliance between AOL and Microsoft’s MSN, another major Internet portal.
Any deal between AOL and MSN could threaten Google, since AOL is major contributor to Google’s thriving Internet ad business, accounting for 11 percent of Google’s $2.6 billion in revenue during the first half of this year.
Richard Parsons, Time-Warner’s CEO, says this is merely a “market rumor.”