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Time Warner, M$ in talks on AOL

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Microsoft

Time Warner Inc. and Microsoft Corp. are discussing cooperation between their Internet search and advertising networks, a source familiar with the matter said on Thursday.

"There have been talks on ways Microsoft and AOL assets can be better leveraged and they've taken place over the normal course of business ...," the source said, calling reports of a joint venture "way overblown."

Discussions started some two years ago after the companies settled a long-running antitrust suit that America Online, a unit of Time Warner, filed against the software giant, the source said.

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