Liberty Media is considering swapping its shareholding in Time Warner for the dial-up business of AOL, John Malone said on Monday, raising the unexpected prospect of a competitive auction for the declining internet access operation.

Mr Malone, whose group encompasses wholly owned businesses such as the QVC home shopping channel and stakes in DirecTV, Expedia and Sprint Nextel, said swapping the Time Warner holding for a cash-generating asset would be “attractive”.