The world's largest software company Microsoft and media giant Time Warner are in talks about how the two US firms can work more closely together.

Press reports claim the talks focus on two areas - the first could see Time Warner's AOL replace its current search engine Google with Microsoft's product.

Secondly, they speculate that Microsoft is keen to buy part of AOL and merge it with its own internet business.

The two have declined to comment and a deal is not thought to be imminent.

Full story: http://news.bbc.co.uk/1/hi/business/4252628.stm