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Microsoft shifts its search to AOL


MICROSOFT has reacted to continued knock backs from Yahoo to sell its online search arm by starting talks with Time Warner to buy its AOL subsidiary.

AOL, formerly America Online, has emerged as an alternative for the software giant which, in results reported last week, recorded a net profit of £2.2bn in April-to-June but lost around £445m from its online advertising division.

This involves pairing up with an AOL or a Yahoo, to convert its still hugely profitable operating system and office software business onto numerous online applications. Big returns are promised from advertising and subscriptions by the internet.

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