AOL is being linked to a possible acquisition of Israeli start-up Quigo, which provides contextual ad solutions to Time’s digital properties and other media groups.

Ha’aretz reports that the firm would cost AOL $300m and help boost its ability to compete with Yahoo!, Google et al in the ad targeting space.

Founded in 2000, Quigo supplies advertisers with contextual placements on websites, as well as search marketing tools.

If true, it would presumably be added to AOL’s ‘Platform A’ ad network, along with, Tacoda, AdTech and other firms bought out by AOL recently.

However, neither firm has commented on the rumour so far.

Related research:
Online Ad Networks Buyers’ Guide 2007