Thursday, September 15, 2005

Microsoft To Buy AOL?

This seems like an interesting development. I mean Time Warner can finally get rid of that underperforming business and Microsoft can add their users to the MSN name. This article says they are collaborating pretty deeply. MSFT has a ton of cash but haven't made many acquisitions recently so there might be something brewing. Here is the extent of the collaboration:

More recently, the executive said, the two companies have been talking about the possibility of deeper relationships, such as collaborating in the lucrative market of selling advertising online.

The person familiar with Microsoft's thinking said the company's MSN unit has always been interested in striking a deal that would allow it to benefit from AOL's market-leading instant messenger program.

Hmm, adding the user base of AIM and MSN could be an easy way for MSFT to increase their installed base. Also they seem to be trying to make an inroad into Google and Yahoo's lead in internet paid search. Could be a good fit as long as MSFT doesn't send out millions of those annoying free CDs.

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