Sunnyvale, Calif. -- Media giant Time Warner may be on the verge of a deal to sell AOL to either Sunnyvale-based Yahoo or Microsoft, Reuters reported on Wednesday. Citing a source close to the situation, the news agency said that the talks have taken on "new urgency" as Yahoo's board prepares for a proxy battle against billionaire investor Carl Icahn at the company's annual meeting August 1. Yahoo reportedly is hoping to convince its stockholders that it can grow without Microsoft. The company over the weekend rejected a deal, orchestrated by Icahn, to sell its search advertising business to the software giant. Both Yahoo and Microsoft see the acquisition of AOL as a chance to boost their presence in the online advertising space, currently dominated by Mountain View-based Google.