Reuters via CNET:
Time Warner and Microsoft have restarted discussions about forming an alliance of their Internet units, America Online and MSN, the Wall Street Journal reported on Friday, citing people familiar with the situation.
The two companies are focused on combining AOL’s Web content with Microsoft’s search-engine technology, although other aspects of the talks are sketchy. It isn’t clear whether they are considering merging their Internet dial-up businesses, which generate lots of cash, the paper said.
The two companies originally began discussions about an Internet deal earlier this year. But the talks stalled in the late summer over a range of issues, including technical obstacles and questions about control.
Many obstacles remain to a deal, the paper said, citing people with knowledge of the discussions. Still, the latest talks have restarted in hopes of reaching an agreement by the end of the year.
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