Report: Microsoft-AOL Close To Deal

Report from CNNMoney.com that AOL and Microsoft are close to hammering out an online advertising alliance to challenge Google. MSN would replace Google's search results on AOL.

The Wall Street Journal reported Wednesday that under the deal now being discussed, Time Warner's America Online unit would switch to using Micosoft's search engine, and the two companies would set up a joint venture to sell online advertising across both AOL and Microsoft's MSN portal.

The newspaper reports that Google is still involved in talks about the possibility of its own alliance with AOL, although a person familiar with the talks told the newspaper a sticking point so far has been Google's reluctance to guarantee Time Warner a minimum amount of revenue, which Microsoft had agreed to do.

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