Google, Comcast to Bid for AOL Portal?

Google and Comcast are reportedly in talks over a possible joint purchase of a portion of the AOL business, several media outlets reported late Wednesday. According to at least one source, the value of the deal could be worth as much as $5 billion.

The search giant apparently approached Comcast last week about a joint deal. Discussions were ongoing throughout the summer between the three companies, but were very preliminary.

The talks seem to be revolving around a purchase of the AOL.com portal, as well as solidifying Google's position as the default search engine for the AOL service. The deal could also be an attempt by Google to spoil talks currently underway between Microsoft's MSN division and AOL over MSN's search technologies.

The two companies would own half of the Web properties of AOL, the Wall Street Journal reported, with Time Warner owning the controlling stake. However, other reports indicate that Google and Comcast may be interested in a stake in the entire company, which would give them more say in day-to-day business.

The deal seems more critical to Google than it does to Comcast. The search engine stands to lose premium placement on the AOL service, as well as a loss of a major AdWords customer. AdWords is Google's paid search advertising service.

However, Microsoft's negotiations with AOL may be further along, Reuters wire service reported. Information obtained by BetaNews on the matter earlier in the week would seem to verify this is indeed the case.

If the deal with Microsoft does go through, it would likely more revolve around search, with MSN's adCenter service possibly a key player in the deal. The service recently launched in the United States as a pilot program after successful tests in Singapore and France.

Microsoft and Time Warner are not commenting on the situation to the press, and Google in a statement dismissed the story as rumor. "Google and AOL have a healthy global partnership and AOL remains a valued partner," the company said.

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