MS to buy AOL?


Recommended Posts

March 19, 2004 --

As Time Warner mulls what to do with its America Online division, the potential buyer on the minds of the company's executives is tech giant Microsoft, The Post has learned.

Time Warner executives have held discussions in recent months with Microsoft about a potential sale of AOL, The Post has learned.

In addition, Time Warner lawyers have begun analyzing any potential antitrust issues from such a deal, and to date their conclusion is that there would be few roadblocks to a Microsoft acquisition of AOL, according to sources familiar with the matter.

Time Warner spokesman Ed Adler said "such speculation is silly and pointless," and wouldn't comment further. A Microsoft spokesperson declined comment.

Sources say the deal being discussed within Time Warner would include Microsoft paying cash plus the assumption of debt to acquire AOL. A possible investment by Microsoft in Time Warner Cable has also been considered, sources say. Microsoft previously invested $1 billion in Comcast, the nation's largest cable operator, and owns about 7 percent of that company.

Time Warner and Microsoft are already deep in discussions about ways to use Microsoft technology in Time Warner's content businesses, and discussions about a deal for AOL emanated from those talks, sources say.

As first reported by The Post this week, Time Warner is stepping up efforts to consider alternatives for AOL. Its bankers at Goldman Sachs are putting together a proposal for the division, which could include a sale, spin-off or radical restructuring of the business.

Sources close to Parsons insist that no deal is imminent and that the review of AOL is only in its early stages. But Parsons himself appears especially eager to pursue a deal with Microsoft, according to a source.

Although AOL is in the midst of a high-profile investigation into its accounting practices and is seeing a decline in subscriber rolls, the division generated $1 billion in free cash flow last year and is expected to chip in another $1.5 billion in free cash flow this year.

This sets AOL apart from its former sister division, Warner Music, which was recently sold off amid a steep decline in its performance due to digital piracy.

Some sources say that Time Warner may yet hold onto AOL and hope for a rebound.

Next month, AOL CEO Jonathan Miller will present an update on the business to Time Warner's board of directors. Miller came aboard in August 2002, after the launch of an SEC probe into AOL's accounting, and was charged with stabilizing the business.

While subscribers continue to flee, Miller has met most of his quarterly targets and stabilized the division's cash flow.

Microsoft, meanwhile, has long coveted AOL - it tried to buy the company years ago, before the AOL-Time Warner merger.

A deal would add AOL's 24 million subscribers to the 9 million at Microsoft's own online network, MSN

NY Post article

http://www.nypost.com/business/17300.htm

Wonder if this will happen or not..

Link to comment
Share on other sites

MS has beenly active encouraging broadband usage so that the MSN network can introduce more on demand services.

I am not sure AOL whose principal subscribers are dialup users is a good buy for Microsoft.

Link to comment
Share on other sites

if that happen microsoft will destroy winamp, aim and icq that would sucks so much

I dunno, Winamp is cool, but once AOL took over ICQ, it started to take a big dump. I don't see Microsoft making ICQ or AOL any worse than they already are. And as for winamp, well fingers crossed. :unsure:

Link to comment
Share on other sites

no way.

what all these people dont remember is that AOL bought TIME WARNER.

AOL is the one that took TW in and paid $50mm of its debt.

AOL will prolly go back to being AOL.

Link to comment
Share on other sites

no way.

what all these people dont remember is that AOL bought TIME WARNER.

AOL is the one that took TW in and paid $50mm of its debt.

AOL will prolly go back to being AOL.

you sure? I thought it was the other way around

Link to comment
Share on other sites

How would NBC feel about it's partnership with MS if MS started dealing ith Time Warner, the parent company of CNN?

I say we tie all news companies together so we truly only get one corporate america side of the story. *sarcasm*

Link to comment
Share on other sites

no way.

what all these people dont remember is that AOL bought TIME WARNER.

AOL is the one that took TW in and paid $50mm of its debt.

AOL will prolly go back to being AOL.

I doubt it, I think AOL is going under and they know it ... they'll split and Time will be it's own company again and AOL will be bought out by Microsoft and Microsoft will own the Dial-up Internet world!

Link to comment
Share on other sites

you sure? I thought it was the other way around

AOL took in Time Warner hence AOL Time Warner. I doubt they chose to put AOL first in the new name just because it sounded better.

Link to comment
Share on other sites

How would NBC feel about it's partnership with MS if MS started dealing ith Time Warner, the parent company of CNN?

I say we tie all news companies together so we truly only get one corporate america side of the story. *sarcasm*

Well, we have MSNBC, so, that would create, MSCNNNBC :p

Then we could add fox news, so MSCNNNBCFOX, and then CBS, MSCNNNBCCBSFOX and then BBC, so MSCNNNBCBBCCBSFOX

Link to comment
Share on other sites

I suppose this is a good thing since AOL sucks so much already. Microsoft will probably make the situation all the more better.

Link to comment
Share on other sites

AOL took in Time Warner hence AOL Time Warner. I doubt they chose to put AOL first in the new name just because it sounded better.

exactly. aol owns 55% of time warner as far as i know.

i doubt this would even happen, solely so that there is still competition... remember, ms DOES NOT rule the world.

Link to comment
Share on other sites

Well, we have MSNBC, so, that would create, MSCNNNBC :p

lol :laugh:

Not sure if they will buy 'em though as someone said about the broadband thing but there are still a lot of dial-up users.

Link to comment
Share on other sites

Well, we have MSNBC, so, that would create, MSCNNNBC :p

Then we could add fox news, so MSCNNNBCFOX, and then CBS, MSCNNNBCCBSFOX and then BBC, so MSCNNNBCBBCCBSFOX

haha

let's hope that day never comes.

Link to comment
Share on other sites

you guys are so lame with your negative aol comments.

aol in the marketplace provides alternatives so that users are not stuck on a service that gives them no benefit.

many of the features in the current msn service were created by aol and implemented by msn.

if aol should rot in hell, so should business.

besides, like i have said before. why dont any of you dis ms for making products with such problems as security holes and flaws. i think that is worse than an internet service provider trying to provide internet service to its customers.

Link to comment
Share on other sites

Time Warner spokesman Ed Adler was not immediately available for comment on Friday. He was quoted by the newspaper as saying "such speculation is silly and pointless."

Microsoft also was not immediately available for comment.

i'll believe it when i see it.

Link to comment
Share on other sites

you guys are so lame with your negative aol comments.

aol in the marketplace provides alternatives so that users are not stuck on a service that gives them no benefit.

many of the features in the current msn service were created by aol and implemented by msn.

if aol should rot in hell, so should business.

besides, like i have said before. why dont any of you dis ms for making products with such problems as security holes and flaws. i think that is worse than an internet service provider trying to provide internet service to its customers.

:laugh: , good point, i think everyone here is trying a little too hard to be cool, so they want to dis aol.

I doubt MS will do this, i dont think they'l buy it, just because they have the money doesn't mean they would or should do it for that matter. I'l be glad to see if aol goes back to being itself, this way they can get their act together and start redesigning their strategy, their product, and their whole company. They came this far, after so many subscribers have left and are leaving, im pretty sure a the company can start to make some changes just to stay in the market, and still be one of the biggest ISP out there. I find that the only thing wrong with the software is their pricing, my household everyone uses it, they don't complain about a damn thing, they like the content, they use it, and enjoy it. I'm sorry most of you had bad experiences with the service or the software, but i havent.

My opinion is just AOL, show let go of Time Warner if they can handle theirselves, if not then too bad for aol, if they cant handle what they owe and try and redesign their company, then aol will just go under...

Link to comment
Share on other sites

why dont any of you dis ms for making products with such problems as security holes and flaws

I used to all the time, but I got flamed and warned...

Link to comment
Share on other sites

This topic is now closed to further replies.
  • Recently Browsing   0 members

    • No registered users viewing this page.