RealTime IT News

AOL Rumored to Have Sights on Satyam

Rumors are swirling around a possible AOL equity investment in Indian ISP Satyam Infoway.

According to a report in New Delhi newspaper The Hindustan Times, the American Internet player is preparing to take a substantial stakehold in Satyam and company executives currently holding exclusive talks.

Public comments have not been made from either side of the table. The company is looking to raise funds, the report said, and is exploring methods to meet its goals. The Hindustan Times also named AOL (AOL) as a rival bidder for Indiaworld.com, which was purchased by Satyam for Rs. 4.9 billion (US$115 million) on November 29.

The AOL stake may be as high as 30 to 35 percent, the report said.

Satyam Friday also formed a partnership with Citibank to develop a payment gateway using Open Market Inc. software, according to a Reuters report. Saytam will begin work on the gateway next month.

Satyam last month became the first Indian ISP to list on the Nasdaq, and has set its sights on acquisitions and the development of an international gateway as its primary post-IPO goals.