In an earlier news story, we learned that Microsoft was in ‘advanced talks’ to create an AOL-MSN merged product. Well fast forward a few weeks, and The Register is reporting that Google and Comcast have teamed up and entered the bidding for AOL.
So why would a search giant and US cable company be prepared to offer $5 billion for an ISP that’s been losing revenue and customers each and every year? Well the Wall Street Journal says AOL provides Google’s single biggest revenue and an AOL-MSN deal would lock Google out. For Comcast, it can dip its feet in a user base still a few million strong. The deal would also, no doubt, appease Time Warner’s shareholders with a nice sum of cash. It’s definitely going to be interesting to see how this plays out.
View: Full Article @ The Register
So why would a search giant and US cable company be prepared to offer $5 billion for an ISP that’s been losing revenue and customers each and every year? Well the Wall Street Journal says AOL provides Google’s single biggest revenue and an AOL-MSN deal would lock Google out. For Comcast, it can dip its feet in a user base still a few million strong. The deal would also, no doubt, appease Time Warner’s shareholders with a nice sum of cash. It’s definitely going to be interesting to see how this plays out.
View: Full Article @ The Register
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