writes "Microsoft executives are reportedly meeting with their AOL counterparts to discuss combining the two companies' online divisions. No one from either side is willing to comment, nor has the structure of the supposed deal been worked out.
The original unconfirmed report comes from the Wall Street Journal (password-protected). A few months ago there was talk about AOL teaming up with Yahoo, but that never materialized."
The free excerpt at the WSJ link above seems to say about as much as this Bloomberg wire report
which refers to it, and the above-linked story at The Standard; this Reuters story indicates that AOL is still courting or being courted by Yahoo!