Murdoch's Sky has AOL UK on radar

James Murdoch is on the prowl.

The chief executive of British Sky Broadcasting said on Tuesday that Sky is considering a possible buyout of AOL UK, as his company seeks to beef up its broadband strategy.

Murdoch, who made his AOL UK comments during an interview with communications firm Cantos, noted such a deal will come at a reasonable price.

"We have said often that we're interested in looking at things that could accelerate our strategy. Let me be very clear that we'll be opportunistic about this particular one - AOL UK. We're right in the middle, with a number of other parties, of trying to understand that business a lot better, but I think there are a lot of question marks around it," Murdoch said. "We don't have an unending appetite for acquisitions or things like that at all. We'll be opportunistic. If we think it makes sense at a certain price, we'll try to move forward at that price. Otherwise, we're very, very comfortable with going out and building this proposition for our customers and growing this customer base as we've spoken about today, really on our own back."

Time Warner, meanwhile, plans to announce on Aug. 2 its future business strategy for its AOL division. The AOL announcement will follow the company's second-quarter earnings announcement.

Over the years, AOL has faced a steep decline in its dial-up business as customers have moved off its service to broadband competitors. The company has responded with several broadband initiatives, such as, re-launching AOL.com to be its broadband portal.