Things aren't going well at AOL. That much is clear. While the company's vast network of digital properties has been struggling for some time, there are now widespread (and varied) reports of company chaos.

TechCrunch is reporting that AOL's blog properties are bracing for 25 percent cuts in total budget. Bloggers are reportedly being asked to take a few weeks off. Whether there will be work for them in August remains unclear.

CNET is reporting that AOL is planning to sell Xdrive, an online storage site. AOL is also reportedly planning to close down Bluestring, a media-sharing site, and MyMobile. 

PaidContent.org is reporting that AOL will shut down the DIYLife blog. AOL has also told Unofficial Apple Weblog and DownloadSquad bloggers, who are paid per post, to stop writing.

All of this comes amid rumors that both Yahoo and Microsoft are interested in buying AOL from Time Warner now that it appears likely that the two will be unable to consummate a deal.

What is less clear is the reason for the cuts. Some AOL insiders have reported that this is just standard belt-tightening. However, an email written by an AOL blogger and published on TechCrunch seems to indicate that there's a larger movement afoot.

There are indeed widespread reports that AOL is cutting where it can to make itself a more attractive target for either Yahoo or Microsoft. That claim is further buttressed by a press release from Platform-A, the company's advertising division, touting its strength. That could be a case of the right hand not knowing what the left hand is doing, or it could be a well-timed strategy by the executives at Time Warner to package AOL as a lean and mean publisher paired with the leading display ad network.

The Platform-A press release touted Advertising.com, one of the key companies in the division, as the No. 1 third party display ad network for the 50th consecutive month, according to comScore.

"With its extensive reach and advanced targeting and performance tools, Advertising.com is a critical pillar of Platform-A," said Lynda Clarizio, president of Platform-A. "Our ability to reach nine out of ten internet users and then use our technology to target our audience in virtually infinite ways is one of our most powerful assets as a digital advertising company."

If Yahoo or Microsoft were to buy AOL, it certainly wouldn't be for its publishing assets, so given the mixed messaging -- slumping publisher/robust ad platform -- it's safe to say that Time Warner is certainly serious about a deal.