Time Warner and Microsoft have restarted talks about forming an alliance between AOL and MSN and are trying, inter alia, to figure out how to combine the former's web content with the latter's search offering, reports the Wall Street Journal (via paidContent), citing sources familiar with the situation. The two companies began discussions earlier this year, but the talks stalled in the late summer over a range of issues, including technical obstacles and questions about control.

Creating a joint venture, which could possibly go public, would be a way for both companies to benefit from rising internet valuations, according to the Journal.

Time Warner is apparently talking with others interested in partnering, according to a person close to the situation. Time Warner Chairman and CEO Richard Parsons said last month that the company need not own all of AOL, so long as it retains control of and access to the business.