AOL, eBay: Getting Cozy?

The two companies are said to be chatting about a range of possibilities, from developing content together to America Online taking a minority stake in the online auctioneer.

America Online is reportedly in talks with eBay about a close business relationship, including a possible acquisition by AOL of a minority stake in eBay.

But the discussions remain fluid, and people familiar with the talks say that a direct AOL investment in eBay was no sure thing, The Wall Street Journal reported on Wednesday.

Officials at eBay (EBAY) and AOL (AOL) were not available for comment.

The companies are talking about how to work closer together, including jointly developed content, so AOL users visiting eBay wouldn't completely slip away from AOL's own pages. Some eBay officials are intrigued by the idea, which could generate revenue for the company, the paper said.

EBay, for its part, is interested in AOL's local sales service, called Digital Cities, which eBay could use to target a city with markets for things such as used cars or furniture.

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