• New York Post, Wednesday, August 11, 2010 1:25 PM

Facebook and AOL are quietly discussing a strategic partnership to boost "their online ad businesses," The New York Post has learned. Discussions have been ongoing for several months over a deal, which "would allow Facebook to tap AOL's mojo in selling online ads," The Post reports, citing three separate sources. Apparently, Facebook chief exec Mark Zuckerberg and AOL CEO Tim Armstrong have been leading the talks, mano-a-mano. "Think of Tim Armstrong's former role running ad sales for Google and think of where Facebook needs help," one source tells The Post.

Also, for Facebook, "AOL brings a lot of content," another source said. "Facebook may not need it, but it won't hurt them to do a deal." AOL, meanwhile, could use all the help it can get these days, particularly in the Facebook-dominated realm of social media. Earlier this year, AOL sold its own social net Bebo to private investment firm Criterion Capital Partners for a reported $5 million -- down from the $850 million it paid for Bebo back in 2008. Worse still, AOL just reported that ad revenue fell 27%, to $297 million, in the second quarter.

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