The paper reported that the talks center on a deal that would fold Time Warner's AOL Internet unit into Yahoo, according to the people, who still consider a Yahoo purchase by Microsoft as the most likely outcome.
NEW YORK (Reuters) - Yahoo Inc <YHOO.O> and media conglomerate Time Warner Inc <TWX.N> have stepped up talks to create an alternative to Microsoft Corp's <MSFT.O> offer to take over the Web company, the Wall Street Journal reported on Wednesday citing people familiar with the matter.
The paper reported that the talks center on a deal that would fold Time Warner's AOL Internet unit into Yahoo, according to the people, who still consider a Yahoo purchase by Microsoft as the most likely outcome.
Last month Microsoft made a $41 billion offer to buy Yahoo, which was rejected as undervaluing the business.
Yahoo and Time Warner were not immediately available for comment.
!ADVERTISEMENT!(Reporting by Yinka Adegoke, editing by Elizabeth Fullerton)
