Microsoft in talks over AOL merger

Redmond is pushing ahead in discussions with Time Warner over a possible merger with AOL's web businesses, according to The Wall Street Journal

Microsoft is in discussions with Time Warner over how to combine Microsoft and AOL's online groups, The Wall Street Journal has claimed.

A Thursday article in the newspaper claimed there had been a meeting between the two companies in Seattle on Wednesday. According to the newspaper's sources, Microsoft and Time Warner have been in "casual talks" for several months.

The talks are linked to Microsoft's abortive attempts to buy Yahoo's search business, according to the The Wall Street Journal. The article noted Microsoft's need to expand its reach on the web, which is being stymied by the lack of large web companies that are available to buy.

Yahoo itself is also reportedly in talks with AOL.

Microsoft declined to comment on the rumours.