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AOL a less challenging buy than Yahoo for Microsoft

Daniel Fleshbourne   on 18 July 2008 - 09:46 · 13 comments & 4685 views

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While it still would present some integration challenges, AOL might be easier for Microsoft to absorb than Yahoo from a cultural and political perspective now that Microsoft's battle for Yahoo has gotten so ugly.

Though Yahoo's search business is the crown jewel Microsoft has been after, the quest to acquire it has degenerated into a string of taunts, threats, and mudslinging for which there seems little chance of an amicable ending. This could pose some serious cultural and integration problems if the companies ever do merge, analysts said.

Purchasing AOL -- a smaller business that would still give Microsoft a host of popular online properties to bolster its advertising business -- could save Microsoft integration grief and the hassles of dragging out negotiations with Yahoo while Google continues to take market share from both companies. It would also be less expensive and wouldn't preclude Microsoft from also buying Yahoo's search business at a later date, analysts said.

View: The full story @ InfoWorld

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(1 reply) #1 thealexweb on 18 Jul 2008 - 09:50
But Google already owns a 5% stake in AOL, I don't think they'll want to sell.
#1.1 ricknl on 18 Jul 2008 - 13:19
Well, that doesn't mean much. Even Microsoft had 2% of Apple shares at some stage.

To have a certain percentage like 2 or 5 does not really much, as long as someone else has enough shares to control the company.
(2 replies) #2 nmesisca on 18 Jul 2008 - 13:53
I wouldnt touch AOL with a 20 foot barge pole if I was MS..
#2.1 magik on 18 Jul 2008 - 14:05
Agreed.
#2.2 +GreyWolfSC on 18 Jul 2008 - 14:29
(nmesisca said @ #2)
I wouldnt touch AOL with a 20 foot barge pole if I was MS..


Exactly what I was thinking. Maybe less challenging, but who cares if they don't want it?
(2 replies) #3 LipSmacker on 18 Jul 2008 - 14:44
Doesn't Time Warner own AOL? Why exactly would they want or allow MS to "take" AOL from them?
#3.1 magik on 18 Jul 2008 - 15:11
It's still considered a separate subsidiary IINM; so they could sell them off separately.
#3.2 ricknl on 18 Jul 2008 - 15:55
And actually, AOL owns Time Warner.
#4 HalcyonX12 on 18 Jul 2008 - 15:39
Wouldn't this introduce some antitrust issues if MS wanted to buy both AOL and Yahoo?

Since they mention advertising being the goal, it seems to lend more weight to the idea that MS is only trying to partner with Yahoo for their patents on the paid search advertising model.
#5 C_Guy on 18 Jul 2008 - 15:56
"Purchasing AOL -- a smaller business that would still give Microsoft a host of popular online properties to bolster its advertising business"

Ha ha ha, AOL and "popular" can't go in the same sentence together. What are the guys at InfoWorld smoking these days?
#6 Dakkaroth on 18 Jul 2008 - 21:06
So is Microsoft looking into making coasters or what?
#7 Shadow Dragon on 19 Jul 2008 - 12:41
I wouldn't mind a takeover, maybe then they could merge AOL and MSN messenger so I wouldn't have to use custom IM clients anymore (on the PC Miranda is my first choice but on my mobile I'd rather just have one simple client).
#8 Shadow Dragon on 19 Jul 2008 - 12:58
I wouldn't mind a takeover, maybe then they could merge AOL and MSN messenger so I wouldn't have to use custom IM clients anymore (on the PC Miranda is my first choice but on my mobile I'd rather just have one simple client).

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