
Yahoo Inc and media conglomerate Time Warner Inc have stepped up talks to create an alternative to Microsoft Corp8217;s 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 Warner8217;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.