Henry Blodget of AlleyInsider.com was out with a report yesterday calling for one of the big portals to be acquired again.

"Amid all the speculation about Microsoft (MSFT) buying Yahoo (YHOO), Yahoo buying AOL (TWX), etc., one thing is nearly certain: One of these transactions will eventually take place -- and probably sooner rather than later. Why? Because Google has locked up the No. 1 spot in the sector, and market won't support more than three competitors."

He also gives scenarios where Microsoft (NASDAQ: MSFT) or Yahoo! (NASDAQ: YHOO) would be a buyer of Time Warner Inc. (NYSE: TWX)'s AOL. Previously, Blodget has covered Yahoo! buying AOL and has given other scenarios where AOL could or should become part of a larger company via an acquisition.

But there are some additional issues here to consider. Let's pretend that Jeff Bewkes decided to just jettison AOL. The company still has some dial-up subscribers and it has invested much effort in its advertising platform, now renamed Platform A. Google (NASDAQ: GOOG) made a $1 billion strategic investment and the terms originally dictated that a monetizing event of some sort would come due in early 2008 (that is right around the corner).

The New York Post reports that plans to make AOL email addresses free for high-speed customers are only the tip of the iceberg; in fact, they say, the Time Warner board is considering much more radical moves. Carl Icahn wanted to spin off underperforming units? Well, then, why not give shareholders what they want?!?

The plan the Post discusses seems much less radical than any Icahn could truly get excited about: they say Time Warner has been talking to the biggie media and internet companies about partnerships, and if that doesn't work out, the board might consider spinning off 20% of AOL to shareholders.

What is 20% of AOL worth? And which 20% might be released into the wilds? This seems an odd proposal, I'd be interested to hear any scuttlebutt you Time Warner watchers have heard on this rumored deal. But even more interesting is the balance of power between Time Warner president Jeffrey Bewkes -- perhaps heir to the Time Warner throne -- and AOL CEO Jon Miller, who the Post says is "playing second fiddle" to Bewkes in the upcoming board meeting discussions about AOL. Will Miller be given the axe, the Post intimates slyly? I hardly even dare ask the question.