Time Warner CEO Richard Parsons Sees More Internet Deals

Speaking to investors at the Credit Suisse media and telecom conference in New York, Richard Parsons said AOL was making progress after deciding last summer to give away most of its services for free to boost online ad sales.

"We are looking for horizontal opportunities to strengthen our position in the advertising space," Parsons said.

Asked if there were any limitations to its potential acquisition targets, Parsons said, "No. Almost anything you could think of other than the really big, established portals is within striking distance for us."

Time Warner shares have risen 24 percent since August, a $20 billion stock buyback to be completed in the first half of 2007, has also helped boost confidence in the stock.

Parsons also said it was unlikely Time Warner would sell off its Internet access business in the United States, like it had done in its European regions.

"I think we've got quite a valuable annuity stream in our access business that I'm not sure some private equity player or some other access provider would pay for," he said. "From Time Warner's perspective, there is still some value that we can get out of the connections to homes for our other businesses."