BSkyB is the forerunner to take over AOL's UK ISP operations (ie, not its websites) after BT said that it would not be bidding for the firm. Both BT and BSkyB were named as possible contenders when AOL last week let it be known, via investment types Citygroup, that they were open to offers for their UK business.
But BT are said to be concerned of the implications of having to integrate its service with the AOL system, which uses that nasty proprietary portal thingy. And a BT deal in this space would also lead to monopolies concerns being raised, which would add to the hassle of any takeover.
But BT not participating in any bidding war for AOL will be a disappointment for the US ISP's parent company, Time Warner, because the interest of a major player like BT could well have forced up the asking price. BSkyB is now favourite, with the Murdoch owned TV company known to be keen to add to its internet business which was launched last year with the takeover of Easynet.