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...reported that AOL and Microsoft executives were in discussions over a possible merger between the two companies.

The idea of Microsoft merging with AOL has been circulating for a couple of months, but given Yahoo!'s shareholder meeting is due for August 1st - the software giant could be using the potential of an AOL deal to sweeten the merger prospects for Yahoo!

Let's put the AOL merger into perspective.

• AOL represented about 11% of US online revenue in 2007,
• It's valued at over US$8.3 billion.
• comScore ranked AOL's Platform-A as the top advertiser network in terms of unique visitors
• AOL sites set new traffic records this year with over 56.5 million uniques per month.

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