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July 16th, 2008

Poll: Would a MicroAOL be better than a MicroHoo?

Posted by Mary Jo Foley @ 12:54 pm

Categories: Corporate strategy, Web 2.0, Search, Advertising, Yahoo

Tags: America Online Inc., Yahoo! Inc., Microsoft Corp., Mergers & Acquisitions, Real Estate, Corporate Law, Investment, Finance, Business Operations, Mary Jo Foley

The latest rumor relating to the Redmondians is Microsoft is contemplating some kind of acquisition or merger with AOL.

As much as I (and many others inside and outside Microsoft and Yahoo) thought a Microsoft buy of Yahoo made little sense, a Microsoft-AOL tie-up seemingly makes even less.

With Yahoo, Microsoft at least was set to get Yahoo’s search share (and/or to take the second biggest search vendor out of the equation). But what would Redmond gain by buying AOL? I am guessing that the Microsoft dealmakers are rationalizing the idea by claiming the AOL online properties would give Microsoft and its adCenter advertisers more potential ad real estate.

But what else would Microsoft get from an AOL acquisition? Are there AOL sites and services that don’t overlap with MSN.com and the various Windows Live ones that I am overlooking? Is Microsoft CEO Steve Ballmer going to cite potential “backend-infrastructure synergies” or “brain trust” rationalizations for an AOL purchase, like he originally did a Yahoo one?

Would a Microsoft purchase of AOL make more or less sense than a Microsoft purchase of Yahoo?

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Other theories and rants welcome in the Talkbacks.

Me? I think Microsoft is doing everything in its power right now to mess with Yahoo. And if Yahoo CEO Jerry Yang is talking to Time Warner/AOL, Ballmer is going to do his best to thwart any kind of deal his nemesis might try to forge.

Mary Jo has covered the tech industry for more than 20 years. Don't miss a single post. Subscribe via Email or RSS. Got a tip? Send Mary Jo your rants, rumors, tips and tattles. For disclosure on Mary Jo's industry affiliations, click here.
  • Talkback
  • Most Recent of 15 Talkback(s)
Microsoft already had MSN, but the possiblities..
MSN was a failure because everyone in the beginning was using AOL. Not many would switch to MSN that already had AOL even if it was a better service.
AOL, even as it has lost most of it's dial up ... (Read the rest)
Posted by: genefitz1976 Posted on: 07/21/08 You are currently: Logged In | Log out
Microsoft tried to buy AOL... Anton Philidor   | 07/16/08
"Giving MS all it wanted" John L. Ries   | 07/16/08
AOL/Netscape did pull away from Mozilla. Anton Philidor   | 07/16/08
Holy cow! kozmcrae   | 07/16/08
RE: Poll: Would a MicroAOL be better than a MicroHoo? chromeronin   | 07/16/08
RE: Poll: Would a MicroAOL be better than a MicroHoo? Herb3   | 07/16/08
I thought that... zkiwi   | 07/16/08
It's a pity I can't draw John L. Ries   | 07/16/08
RE: Poll: Would a MicroAOL be better than a MicroHoo? jscarey   | 07/16/08
Buying AOL would be like having MSN 2.0 Randalllind   | 07/17/08
Summer news doldrums, Mary-Jo? TtfnJohn   | 07/17/08
RE: Poll: Would a MicroAOL be better than a MicroHoo? Unknown   | 07/17/08
I think its a great idea kokuryu   | 07/17/08
RE: Poll: Would a MicroAOL be better than a MicroHoo? edkofc4@...   | 07/20/08
Microsoft already had MSN, but the possiblities.. genefitz1976   | 07/21/08

What do you think?

2 Trackbacks

The URI to TrackBack this entry is:
http://blogs.zdnet.com/microsoft/wp-trackback.php?p=1488

  • Microsoft Now Wooing America Online (But So is Yahoo)
    You would think after entering into a disastrous relationship with a technology company, Time Warner wouldn't be all that excited about doing a deal with the uber-tech company, Microsoft, but that's apparently what's being bandied about ...

    Trackback by marketingshift: Daily Crash Course in Marketing Technology & Brand Management — July 16, 2008 @ 8:57 pm

  • Microsoft and AOL?
    She observes: I think Microsoft is doing everything in its power right now to mess with Yahoo. And if Yahoo CEO Jerry Yang is talking to Time Warner/AOL, Ballmer is going to do his best to thwart any kind of deal his nemesis might try to forge.

    Trackback by Anonymous — July 17, 2008 @ 3:06 am

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