Google in bid for AOL shares

Google and Comcast are to develop a joint bid for a minority stake in AOL

Google has teamed up with Comcast, the biggest cable operator in the US, to develop a joint bid for a minority stake in AOL, according to a report in the Financial Times.

The bid faces opposition from arch rival Microsoft, which has been talks with AOL parent Time Warner for several weeks over a similar bid.

It is not clear whether the talks include allowing Google greater distribution of its services or greater access to AOL and Time Warner content.

A deal could also pit the three against Yahoo and Microsoft which agreed to link their instant messaging services yesterday.

Meanwhile, Google has set aside £55m to create a charitable foundation dedicated to relieving poverty and advancing energy and environmental causes, something it pledged to do prior to its stock market listing.