AOL boss denies he wants to sell to Ballmer

AOL CEO Tim Armstrong has been telling the world+dog that there is no truth to reports in the SFGate that he wants to flog his outfit to Steve Ballmer

However, SFGate has stuck to its story and said that everyone knows Tim would love for search negotiations with Microsoft to end in a merger.

However, it adds that it is unlikely that Armstrong will convince Ballmer to write a cheque for the outfit.

SFGate says that Steve is more more likely to 1) pay a heavy premium to service AOL search and 2) buy an AOL asset, such as MapQuest, that could conceivably boost Microsoft’s search share.

However there could be something else going on here. SFGate’s deep throats in Redmond claim that Ballmer wants to recruit Armstrong.

Armstrong came from Google and Steve flew Tim to Seattle in hopes of convincing him to replace Steve Berkowitz as Microsoft’s online supremo.

The two are mates and while they chat all the time, it is unlikely they will score a merger.

Ballmer has been banging on for a long time that “media is not strategic”. It has even offered to get rid of MSN and give it to Yahoo in exchange for Yahoo search.