The New York Post reported this morning that Time Warner and Microsoft are in talks to sell a stake in AOL to Microsoft.
Citing two unnamed sources familiar with the matter, the Post said the talks concern Microsoft acquiring an AOL stake and then combining it with Microsoft’s Web unit MSN.
Microsoft would pay some money to Time Warner for the AOL stake, leaving the two companies approximately equal partners in the venture, the Post said.
It’s an interesting development, that’s for sure. It smacks of the MSNBC joint venture between Microsoft and NBC. However, at the time, MSN and NBC weren’t competitors.
Comparing the companies, AOL has much higher revenues, and a much larger paid install base. AOL has the better brand as well, and the better media properties (courtesy of Time Warner). Microsoft, however, has the better technology, and is perhaps better equipped to take advantage of Web 2.0. And, of course, Microsoft doesn’t have Carl ICahn demanding that they shed business units.
Alec Saunders is the Vice President of Developer Relations for BlackBerry maker Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.
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