Hmm this article is very interesting regarding this possible merger. The Bullish guy raises some very good points. While the Bearish guy has thinks MSFT should undercut its rivals in paid search (since they have money to burn) instead of merging with AOL.
One thing MSFT should try is to make all of AOLs customers into broadband subscribers by any means necessary. They should try to make the dialup connection obsolete. They can work with local broadband suppliers to create a MSFT branded broadband service that they can provide to AOL customers on the cheap. They could even make this the default setting in Vista. It could mean that more people will be going to Google and Yahoo but they will be paying MSFT $19.99 to do it.
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