Microsoft looks favourite to take a slice of AOL, according to a report by The New York Times.

Last week, Time Warner confirmed that it was holding "exploratory" talks with a number of operators over the future of its AOL internet division.

Chief exec Dick Parsons admitted that the internet giant was "holding exploratory discussions with a number of strategic partners" concerning a "range of potential strategic relationships and transactions".

A number of companies - including Microsoft, Google, Yahoo! and cableco Comcast - have all been linked to a possible deal that could see the creation of a joint venture operation or some kind of merger.

Now the NYT reports (http://www.nytimes.com/2005/11/07/technology/07aol.html) that Microsoft has "emerged as the front-runner" although there's still a chance that this nag could fall anywhere between now and the finishing line.

Neither should anyone rule out a late charge by one of the others since any deal is still likely to be some way off. ®

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