New York - AOL (NYSE: TWX) could emerge as the big winner of this weekend's failed mega-deal between Microsoft (NASD: MSFT) and Yahoo (NASD: YHOO), with both companies potentially seeking to acquire the Time Warner unit in their efforts to better compete with Internet ad leader Google, The Wall Street Journal reported. "Both companies may turn their attention to the struggling Internet business, providing Time Warner Chief Executive Jeff Bewkes with a possible exit strategy," The Journal reported.

In fact, the Times Online reported on Monday that, since the collapse of the deal, Time Warner already has approached Microsoft about a possible combination.

The two companies had previously discussed a potential deal, which reportedly would have given Time Warner a roughly 20% stake in Yahoo in exchange for AOL.

One hurdle, however, could be Google, which owns a 5% stake in AOL.

Microsoft on Saturday withdrew its $47.5 billion bid for Yahoo, ending a three-month takeover effort.

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Related Links:
http://snipurl.com/278z9 (Times Online)

http://online.wsj.com/article/SB120992082388165663.html