Facebook And AOL Consider Online Ad Deal

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Facebook and AOL are reportedly in discussions about a strategic alliance to improve their online advertising business.

The two companies have been in talks for a number of months that would allow Facebook to team with AOL in selling online advertisements, the New York Post said, citing three separate sources.

Facebook-AOL-Ad-Deal "Think of Tim Armstrong's former role running ad sales for Google and think of where Facebook needs help," said one source.

One option is AOL being named a "preferred media partner" to Facebook, a source said. "AOL brings a lot of content," said another source. "Facebook may not need it, but it won't hurt them to do a deal."

"We don't comment on market rumors," an AOL spokesman told the Post. Facebook also would not comment about a potential ad deal with AOL.

Facebook COO Sheryl Sandberg said recently that advertisers wanting to reach the site's 500 million users have increased spending by at least 10-fold in the past years.