The Wall Street Journal has claimed that Google has taken a 5 percent shareholding in AOL for $1bn. Microsoft had been the firm favourite to cut a deal on paid advertising even though its suggestion of a merger between the portal and MSN was rejected as too complex.

Later reports suggested that Microsoft was seeking an arrangement to use the Time Warner company’s ad serving capability, which would have considerably enhanced its position in paid search. But Google, which already provides search services to AOL, came up with the most acceptable offer.

It’s back to the drawing board for Microsoft’s ambitions to be a major player in paid search. Google, however, may have made a shrewd investment ahead of a possible AOL flotation, while holding in check a major competitor.

Time Warner is in exclusive talks with Web search leader Google about broadening a partnership with Time Warner’s AOL online unit, sources familiar with the matter told Reuters.

Microsoft, once the front runner, may well be sidelined in a new deal. “From the Time Warner and AOL perspective, it’s been a plus obviously that they’re getting fought over,” said Barrington Research analyst James Goss. “It says very good things about the importance and the place at the table, if you will, that AOL represents.”

Neither Google nor Time Warner spokesmen would comment. Microsoft also declined to comment

A poll of 600 global business influentials in 65 countries, conducted by Burson-Marsteller with the Economist Intelligence Unit (EIU), singled out Bill Gates as the most admired world leader. The study reports:

The selection of Bill Gates as the 2005 world’s most admired leader not only recognizes his ongoing stewardship at the company he founded but it also acknowledges the powerful effect that the Bill & Melinda Gates Foundation has had on Bill Gates’ reputation,” said Dr. Leslie Gaines-Ross, Burson-Marsteller’s study architect. “Leaders and their companies can no longer safely ignore the value placed on corporate responsibility and commitment by 21st century citizens.

As a counterweight, however, the cynical old Register dredges up a Wall Street Journal piece which informs us that: “Gates wears stockings around the house, likes grilled cheese sandwiches and pounds Diet Orange Crush.”

There are worse crimes.

It’s a sign of the times we live in. With China and India posing real competition to the USA, Britain, Japan and Europe in information jobs, as well as traditional assembly line work, Bill Gates is mining the new seam of talent.

According to Kerala Online, he has launched “Code 4 Bill”, a nationwide talent hunt to identify India’s best student technologists.

The contest will provide 20 students with an opportunity to intern with the software major at its India office. The best among the participants would get to join Gates’ Technical Assistants’ team for a year. The contest is for pre-final and final year students pursuing various technical streams across India. The registration for the contest will commence next month.

Microsoft says that India is the first country where students “get this opportunity to learn cutting edge product development and innovations that are powering the world by working directly with Microsoft’s Product Development and Research teams”.

Bill Gates comments: “Talent is what powers the success of the global IT economy today. Indian students are setting high standards in the industry. It’s very important for India to maintain this edge, and continue to nurture and develop students so they can drive India’s progress as an IT leader”.