AOL buys Web tech firm Sphere Source

NEW YORK (Reuters) - Time Warner Inc's AOL said on Tuesday it has purchased Web contextual display company Sphere Source Inc as part of a move to expand its Internet and advertising portfolio.

Financial terms were not disclosed. Technology blog TechCrunch said the deal was worth about $25 million, citing unnamed sources.

Sphere, founded in 2005 as a blog search engine, develops Web technology that displays articles, videos and blog entries next to other related content on Web sites. Its technology is used by over 50,000 sites, including those of media organizations CNN, Reuters, Newsweek and CBS.

"This acquisition provides AOL with access to advertising inventory across Sphere's network, while growing its reach to content publishers via the widget," AOL President Ron Grant said in a statement.

(Reporting by Kenneth Li; Editing by Brian Moss)