• Reuters, Wednesday, December 7, 2005 10:45 AM

While many news outlets, relying on a story in yesterday's Wall Street Journal, reported that America Online appears to have selected former rival Microsoft for an expansive joint advertising deal, Reuters reports its sources say Google remains very much in the running for essentially the same type of deal with the resurgent Time Warner unit. "At least one more round of discussions is planned with each of the two parties," a source told Reuters. While some investors may be disappointed by AOL's refusal to enter into a stake sale, which they believe would more rapidly lead to a stock-price increase for Time Warner, the joint advertising pact appears to be the path TW's executives have settled on, at least for now. A final decision on AOL's partner--Microsoft or Google--is expected before year-end.

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