Cable operator NTL which operates Dublin's multi-channel television system, said today it was in early stage talks with the world's biggest media company AOL Time Warner about a possible partnership in Europe.
Industry sources said an alliance between the two groups could see NTL offer its European broadband distribution network in return for AOL Time Warner's prize content, industry sources said.
AOL Time Warner, created from the merger of America Online and Time Warner in the world's second biggest takeover, has been looking to spread its wings in Europe for some time as part of efforts to raise its international revenues.
NTL has 8.5 million subscribers across Ireland, Britain and continental Europe. But the group has been plagued by concerns over how it will recoup heavy investment in its infrastructure and a content partner of the quality of AOL Time Warner would be seen as quite a coup, analysts said.
However, both sides insisted they were still far from a deal.
"We're talking to everyone in the market on broadband including NTL but there are no announcements to make," an AOL Europe spokesman said.
NTL last week secured $388 million of financing from GE Capital, the financial services arm of General Electric, helping to soothe concerns about its balance sheet.
NTL, whose investors include France Telecom and Microsoft, had no comment on a report in the Sunday Timesnewspaper that it was running low on cash