Carphone Warehouse has won the auction to buy AOL UK for £370m, the BBC has reported.
Time Warner’s AOL UK business has been up for auction for some time and the European operations, including the UK, have been making widespread redundancies in the face of plunging revenues.
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AOL UK has struggled to carve out a profitable broadband internet business to replace its rapidly declining dial-up internet customer base.
Despite this however, AOL UK is still one of the biggest UK ISPs, with an estimated 1.5m broadband customers and 600,000 dial-up customers.
Carphone Warehouse moved into the broadband market earlier this year, offering a free broadband service to customers who signed up for its TalkTalk phone service.
The free broadband model has been followed by Orange, which is giving away broadband to customers who sign up to certain mobile phone packages.
Sky is also offering free broadband to customers who buy its satellite TV packages.
The BBC reports however, that Carphone Warehouse will continue charging AOL customers for their broadband and dial-up connections.
No formal statements have so far been made by AOL or Carphone Warehouse on the acquisition.