Microsoft Eyeing AOL? 449
meriksen writes "This article on the CNN website suggests that Microsoft is looking to acquire AOL. What are the chances and do /. readers think this will ever happen?" The NY Post story is slightly more informative.
Those who can, do. Those who can't, buy. (Score:5, Insightful)
Besides having to sell over Netscape (I think I have $10 here...) wouldn't there be a problem with Microsoft's existing deals with Comcast [microsoft.com]?
Well, when they deny like that, what additional proof does anyone need that this is pretty much a done deal?
Re:Those who can, do. Those who can't, buy. (Score:4, Interesting)
What problem would that be? Nothing really prevents Comcast and Time Warner Cable from merging if that's what they wanted to do, since there's no place in which the two cable companies compete with each other.
Re:Those who can, do. Those who can't, buy. (Score:5, Funny)
Re:Those who can, do. Those who can't, buy. (Score:5, Funny)
Bill Gates? On Security Council? We're doomed!
You know, I always get nervous when I hear Bill's name mentioned in connection with word "Security".
Re:Those who can, do. Those who can't, buy. (Score:4, Funny)
Real benefit will be search market (Score:5, Insightful)
However, there's a chance this will be another case of the European Union blocking a merger that American anti-trust law OKs?
Re:Just imagine the hit to oss (Score:5, Informative)
Re:Those who can, do. Those who can't, buy. (Score:3, Insightful)
AOL a Dog? (Score:5, Interesting)
While I may think AOL is too big for Microsoft to acquire and manage properly, that's just my opinion and it's likely incorrect, as Bill Gates is an iron leader of a huge corporate empire, with the Midas touch, and elite backing that gives anyone with that much money a guarantee of acquiring even more. What is more interesting than all the market'spaek, is that Time/Warner wants to dump AOL... and for this I am not surprised, while the article is more along the lines of Microsoft wanting to get their greedy hands on AOL, any objective observation would lead one to ponder if AOL is having trouble, or projected trouble? Whenever I have ever sold a car, it wasn't because I wanted some schmo from the public to get my super amazing car and benefit from it; it was because the car was old and I didn't want it anymore.
Re:AOL a Dog? (Score:5, Insightful)
In addition, I think that a merger of this type would have extreme trouble getting through the SEC. This has "monopoly suit" written all over it.
Re:AOL a Dog? (Score:2)
Re:AOL a Dog? (Score:5, Funny)
Mass suicides?
Re:AOL a Dog? (Score:5, Insightful)
A mass exodus to Apple or Linux. That's what I'd do for my organization, and I have the power to make it happen. I wonder if Microsoft knows how close some of us are to switching like that? Their credibility is hanging by a thread, and the only thing keeping us from dumping them is how many products of theirs we use and the costs associated with retraining. There are those of us that can make the case to managers that will listen. Once the dollars add up, people are quick to change.
We keep hearing, almost daily, that such and such company is moving to Apple, or that some country's government across the big pond is moving to Linux. It almost seems like the house of cards is beginning to fall. Albeit, slowly, but here and there, it's starting.
Not the corporate version (Score:5, Interesting)
Re:AOL a Dog? (Score:3, Informative)
Several things happened to AOL over the last 10 years. Ten years ago, AOL first hit critical mass of 1 million subscribers.
Eight years ago, AOL purchased WebCrawler and a few other companies. They launched AOL Europe opening internet service to the German public. And AOL Europe didn't make money, but cost a bundle to set up.
Seven years ago, as AOL popularity grew - they ran in
Re:AOL a Dog? (Score:4, Insightful)
Re:AOL a Dog? (Score:5, Interesting)
Despite the fact that AOL/Netscape has fired most (if not all?) of the Mozilla developers, I'm sure (assuming Netscape was part of the aquisition) Microsoft would jump and the slap-in-the-face it could give the OSS community at large.
And AOL owns Nullsoft. Assuming that is part of the Aquisition, it would be another interesting sping.
I'm sure the list could go on if I got bored. But it's all based on assumptions about what Microsoft would get with the purchase.
Re:AOL a Dog? (Score:5, Insightful)
1) for millions AOL is the internet. and with millions of new subscibers, they direct HUGE traffic towards their sites. remember the smart tags in office. think AOL keywords. bingo.
2) and, you buy them. ain't like microsoft has never done this before.
remember, they are no longer, if they ever were, an innovation company. they have a US market share at which the only direction is down. their foreign share is tenuous at best with the rise of linux and gov't's, etc., becoming increasingly wary of microsoft. the biggest part fo their angst regarding linux is they can't buy it. they can't stop it. and they're not happy. aol just solidifes their hold on US market.
Re:AOL a Dog? (Score:5, Insightful)
Re:AOL a Dog? (Score:3, Insightful)
Regardless of what has happened in the past with the DOJ and anti-trust cases, there would be no way that these three aspects of any merger would be overlooked. IANAL, but I
Re:AOL and "the real internet" (Score:5, Insightful)
The thing is, they wouldn't be running both AOL and MSN simultaneously. What they'd be paying for is the existing AOL customer base, which they'd then be able to migrate over to their service. (There are a number of ways this could be accomplished, but an "optimal" method might be creating a new "AOL 10" type CD that asks users if they'd prefer the "old AOL style" front-end, or just a direct connection to the Internet without it. This new CD could be modified to connect to MSN's existing phone numbers or gateways, allowing Microsoft to slowly phase out and sell off the hardware they obtained from the AOL purchase.)
As it stands, MSN competes pretty directly with AOL. (The "rest of us" don't generally consider either one a viable option for our internet needs.) If they absorb AOL, they might have enough customers to make it profitable.
Re:AOL and "the real internet" (Score:5, Funny)
I'm going to miss those free coasters and DVD cases.
Why did HP buy Compaq? (Score:3, Insightful)
Perhaps the biggest reason was that it funnelled more customers to the more profitable accessories businesses (if I buy a computer from HP, I might as well buy the printer from there as well). Also, the economies of scale in their parts business (both HP and Compaq sell highly proprietary parts which are only available from
Re:AOL a Dog? (Score:5, Funny)
I think they want to extend their monopoly to the market of failing ISPs...
You've Got Patch!!! (Score:5, Funny)
That.. (Score:4, Interesting)
Re:That.. (Score:2)
And say hello to Jabber.
Re:That.. (Score:2)
Re:That.. (Score:2, Insightful)
That's my guess.
Re:That.. (Score:3, Interesting)
Yeah, just like how AOL did with ICQ when it acquired it.
Did AOL just buy ICQ to kill it?
Re:That.. (Score:5, Insightful)
Microsoft's not that stupid. They'd likely shutter the MSN Messenger operation and transition its userbase over to AIM.
AOL has always been a bigger name than MSN. I highly doubt Microsoft would aquire such a brand image then not use it.
Re:That.. (Score:3, Interesting)
And that's stupid? Not really. Just lazy. I doubt it cost them that much money, and you know what? Nothing else matters. At all. A company with bad software is not necessarily stupid, especially if they manage to sell that bad software as well as MS has.
Not just AIM... (Score:5, Interesting)
I thought it couldn't get any worse... (Score:4, Funny)
They can have it (Score:3, Funny)
What about Netscape ? (Score:4, Interesting)
Re:What about Netscape ? (Score:5, Insightful)
And that $4.2 billion dollars has might as well be written off as entirely lost. Netscape Navigator is more or less a trivia entry in the browser wars, handing off the MS-fighting role to its child named Mozilla. Netscape's now mostly being used as a content portal...
Netscape could fold from the browser business and it wouldn't give a monopoly to Microsoft anymore.
Dont forget about winamp (Score:2)
Re:What about Netscape ? (Score:3, Insightful)
That was an example of both a horrible purchase, and horrible brand management. The Netscape name is pretty worth nothing now, since there's really no live product, and just another stupid portal. Like other posters said, AOL is being run into the ground, and the Netscape acquisition is one stellar example of bad management.
What IS Netscape? (Score:3, Insightful)
MS+AOL=love? (Score:5, Funny)
On the other hand, this might also have its advantages. We wouldn't have to be anti MS AND anti AOL anymore because it would be just one thing or one enemy less.
Assimilation (Score:2, Funny)
Re:Assimilation (Score:3, Funny)
One OS to rule them all
One ISP to find them
One suite to bring them all
And add their distinctiveness to our own... we wants it, we do!
We are Sauron of the Borg.
Resssissstence isss irrelevant.
What? (Score:2, Funny)
Makes great sense for Microsoft. (Score:5, Insightful)
Microsoft already has the cash on hand, and AOL Time Warner stock has dropped about 75% since the merger was completed.
This suggests that they're only trying to acquire AOL, not AOL Time Warner - so this wouldn't be the complete media content delivery yadda yadda that they want. However, AOL has a large subscriber base and serves as an awesome potential outlet for Microsoft's content.
But is it a scary thought? Oh hell yes.
-m.
Certainly could happen (Score:5, Interesting)
Microsoft would make an equally odius partner to combine with AOL. Lie down with dogs, wake up with fleas...
If you can't beat 'em, try to buy 'em. (Score:3, Insightful)
Re:If you can't beat 'em, try to buy 'em. (Score:2)
Great (Score:5, Funny)
Anti-trust (Score:2)
This'd be tied up in courts for years. I mean, I know they're in different markets (excluding MSN), but given that Microsoft ARE convicted monopolists, this just wouldn't get approval.
Microsoft surely can't be that stupid........can they??
Good news for Anti-MS crowd though (Score:2, Insightful)
This is a great idea (Score:2)
Who knew the jokes would be this easy.
On a more serious note: The sad thing about this really is how bad AOL has managed the last 4 or 5 years. At least Microsoft will be able to recognize the value of AOL more tha T-W did.
Ted
ICQ.. (Score:2)
Not to sure about the netscape stuff being affected... its just a useless portal now, and iirc AOL let the mozilla coders go a while back, hence the mozilla foundation.
AIM + MS + AOL = (Score:5, Funny)
A-IMSOL.
(read each letter individually)
Where's the content? (Score:5, Interesting)
This is important because AOL's not really just an ISP anymore. Many people who have a fully functional ISP connection are still paying AOL just for it's boatload of exclusive content. AOL without the Time Warner content base would look something like MSN, and just not have as many members as it has now.
Any MS-AOL would need to license more content than it would have in house. AOL's worth more inside a media company than it is inside Microsoft, I can't see how this deal makes sense.
Bling... (Score:5, Funny)
They deserve each other (Score:2)
AOL name change (Score:2)
Tough to say. (Score:2)
I don't know what the profitability forecast is like for AOL, but surely Microsoft would do better to play up MSN than to sink t
Talking about it for years... (Score:5, Interesting)
Why not? (Score:3, Insightful)
AOL is a black mark on Time Warner, and they would love to get rid of it. This would vastly increase MS penenatration in the broadband markets and they can expand their strict policies on what can get on the Internet. MS has the cash, AOL has the customers of the type they so desperately want. It's a marraige made in hell. I predict this goes through.
Don't step in the FUD (Score:2)
performance decline due to digital piracy? What's next? Newspaper readership declining due to ignorant reporting?
EAT THE POISON BILL (Score:2, Insightful)
Anti-Trust all the way (Score:2)
Just wait until we hear from the DOJ. If they wouldn't let Oracle purchase PeopleSoft, they sure as hell had not better let this happen.
In the better case, if they somehow do purchase it, it's pretty hard to say what would happen to
Great Idea!! (Score:5, Funny)
Bill G pretty much already owns SCO -- if MS and AOL merge, Slashdot will just need one "It's Evil. Laugh" icon for all three.
Hmm.... then we can put Apple, Java, and BSD under one "Yup, It's STILL dying" icon.
Fight Club? (Score:2)
"When deep space exploration ramps up, it will be corporations that name everything: The IBM Stellar Sphere. The Microsoft Galaxy. Planet Starbucks."
First rule of Slashdot (Score:3, Funny)
The Perfect Solution (Score:5, Funny)
This would solve all the problems for spam in the world today.
* ^From.+(aol|msn).com
beautiful!
Ny Post article slashdotted (Score:2, Redundant)
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, acc
I would think the EU would also be a roadblock (Score:4, Insightful)
When I formerly worked with Sprint, and MCI was trying to buy them, it was a God-send that it got blocked. It may prove to be the case here as well. We've already read stories on here about the EU not being Microsoft friendly.
In the end, would it benefit the consumer? I'd be inclined to say, "Maybe, but probably not". The only benefit to M$ shareholders is rolling in the monthly subscriber fees. However, they are from a fickle market: consumers. M$ gets their monthly royalties from a reliable, steady source: businesses. This is part of the reason Nextel kicks everyone's ass in terms of revenue per user (because they identified this marketing trend early and targeted it).
John
cliche in action (Score:5, Funny)
Google connection (Score:5, Informative)
A while ago Microsoft was considering purchasing Google. On the other hand AOL has right to buy nearly 2 million Google shares [com.com]. If MS buys AOL then, by implication, MS has the same right ...
So it begins... (Score:5, Funny)
RTFM - it is AOL, not AOL-TW (Score:3, Informative)
The FTC will never allow it.... (Score:5, Funny)
MS - AOL - Google( shares ) (Score:3, Interesting)
This could be an interesting buy, I guess. See this
article in C|Net on AOL's rights in buying Google's
shares...
http://news.com.com/2100-1032_3-5175783.html?ta
May god help net
Time-Warner mismanages AOL (Score:5, Informative)
I have a Time-Warner cable modem. Time-Warner has to let other ISPs use its cable lines, so when you sign up, you can take Time-Warner's Road-Runner, Earthlink, a local company, or AOL as your ISP.
If you walk into the cable company office, you see tons of promotional material for Road Runner. They have cartoon road runners on posters all over the place, terminals in the office so you can see how fast it is, and all the rest.
But there is no sign whatsoever that AOL is available. You have to know about it. I'm not even sure you can sign up for AOL at the office -- you might have to call AOL and get it set up.
Whether or not you like AOL, it's a big brand, and a lot of people do like it. I think that if they had posters for AOL at the office, along side of the Road Runner stuff, they'd sell as many AOL accounts as Road Runner accounts.
They don't, though. Why? Corporate infighting? Not wanting the other guys to look good? I don't know.
The point is that AOL is an asset that Time-Warner, for whatever reasons, doesn't want to maximize. Someone else would do a better job.
Why? (Score:5, Funny)
Bigger dial up market share (Score:3, Informative)
As of Sept 2003:
-America Online had 24.7 million subscribers and a 25.6% share
-MSN had 8.7 million subscribers and a 9.0% share.
So MSFT could buy the dialup business and hold a significantly larger share of the ISP business. 34.6% does not a monopoly make.
Take the content and Roadrunner and Cable. Combine it with Paul Allen's Comcast and you now have 45% of the ISP market and a significant portion of the cable TV market
Time Warner Roadrunner broadband never offered AOL as an ISP option. So I suspect that they do not think highly of AOL even within the walls. You can even get Earhlink or Max.Inter.Net as an alternative!
What's next? The government? (Score:5, Funny)
In other news, Microsoft today announced plans to acquire the government of the United States. By leveraging innovative technologies, content providers streamline compelling enterprise solutions.
A Microsoft spokenperson commented, "By controlling what is arguably the most powerful government in the world, Microsoft will be able to better control the rights of consumers in regards to the company's valuable intellectual property." The first change to be made, according to Chairman and now Chief World Domination Officer Bill Gates, is to rename the IRS (Internal Revenue Service) to MRS (Microsoft Revenue Service). From now on, all tax dollars will go directly into Bill Gates' checking account.
Microsoft's acquisitions last week of the RIAA, MPAA, SCO, and the Equifax credit reporting bureau have empowered the company to supply the best operating system since Windows XP, enabling the multinational corporations next on Microsoft's acquisition list to gain a higher return on lawsuits against their own customers.
Microsoft stock climbed 90 points after the announcement.
NY Post? Highly Informative? (Score:4, Funny)
The horsemen... (Score:3, Insightful)
Seriously though, if Microsoft were to aquire AOL, what would stop them from ISP and OS domination? They could make a big mess for non-windows users to be online in that case... I could see it now:
**Joe user opens www.--------.com**
"We're sorry, this Microsoft Enhanced webpage cannot be viewed on this computer. Do you want to upgrade to Windows OS?"
AOL + MS = big economic drain (Score:3, Interesting)
admit it - the majority of
the new grownup ms ads make me want to watch 'office space' to see more realistic cubicle behavior, and the kids ones make me imagine that kid never gets to astronaut school because he's doing his application in office...
on the other hand, the prospect of apple / pixar / disney being aligned could make people skip down the street...
Dang it! They'd have all of our Mozilla Source! (Score:3, Funny)
this will never happen... (Score:5, Insightful)
1. AOL has the option to buy a large chunk on Google and Google is AOL's preferred search option. AOL promotes Google in their commercials.
It is no secret Microsoft wishes to bury Google with Longhorn.
2. AOL owns WinAmp.
Microsoft getting its grubby hands on WinAmp and other Nullsoft properties wouldn't be allowed. See the European Union's (non Mad Cow) beef with Microsoft and Windows Media Player.
3. AOL owns AIM and ICQ.
Microsoft acquiring either or both of these Instant Messenger platforms would not be permitted. AIM is essentially the standard IM client on mobile phones in America. AIM is also the basis for Apple's iChat software. There are too many parties involved that would object to this.
4. AOL has options to buy Amazon.com stock and owns shares.
'Nuff said.
5. AOL owns shares in TiVo and is a partner.
'Nuff said. See UltimateTV. Also see "WindowsXP Media Center."
6. AOL is an active partner in Sony's plans of offering IM services to the Playstation platform. While this has not happened on the PS2, it is most likely scheduled for the PS3.
Microsoft and the Xbox, not to mention the Xbox Next. 'Nuff said.
7. AOL is a preferred partner with Apple's iTunes.
Microsoft acquiring AOL will again be seen as a move to squeeze Apple out of the market just like over the AIM situation. This will only aide the antitrust lawsuit Real Networks has leveraged against Microsoft.
8. AOL was an institutional shareholder in Palm since the spin-off from 3Com.
Again, Microsoft acquiring AOL would be a headache because this would be yet another example of Microsoft hitting at its various competitors.
The Bush Justice Dept., already burned over the Antitrust Settlement, will in no way allow this to go through.
I read something like this... (Score:4, Insightful)
Does America have NO anti-competition laws???
In Europe it is highly doubtful a huge predatory company, with a track record such as Microsoft's, would get the EU go ahead to acquire/merge with a company like AOL.
Re:I read something like this... (Score:3, Interesting)
When the Microsoft/EU case develops a bit further, watch t
New MSN/AOL (Score:3, Funny)
NY Post (Score:4, Funny)
That's a first!
Open source sig, feel free to modify and distribute.
They Do not Need to Aquire AOL (Score:4, Informative)
Microsoft-Aol-TimeWarner-Comcast-Disney? (Score:5, Insightful)
The key to this deal is Microsoft's position as the largest single shareholder in Comcast owning 15% of the companies stock. Compare this to the Roberts family (Ralph Roberts, founder of Comcast, and Brian Roberts, CEO) holdings of slightly over 1% of the company.
If Comcast acquires Disney, then a voting policy dictating that the Roberts family shares are weighted in voting to = 7.5 votes per share while other shares are = to only around
Just think about the future that these two deals could bring us, Microsoft being in control of the vast majority of news, music and recording, movie, and print media in the United States while being capable of dictating the protocols that are used to connect to, and to filter the trafic to and from, the internet.
It's not a tin foil hat theory. It's simply the logical extension of such consolidation of communication and media marketplace under the control of one company that has a rather nasty history of not respecting the wishes of the community that they chose to do business in.
Oh yeah, Paul Allen's vompany Vulcan Northwest Inc. [cjr.org] owns a 5% share in Microsoft, so we can probably count Charter Cable and a number of other media and telecom companies as being involved in this as well.
AOL and Microsoft?, smells like another Worldcom (Score:3, Insightful)
After worldcom imploded, everyone looked to put the blame on them, but forget to ask about the partners in crime.
Simlar to the illegal practice of swapping bandwidth [internetnews.com] at the end of the quarter to inflate the value of the company that worldcom, quest and colt were involved in was also practiced by AOL [techdirt.com].
But AOL has been deeply involved in Worldcom, as well as Microsoft with both of them.
Worldcom was also hugly overvalued, and way buying up company left and right, until the bubble burst when the MCI merger blew up.
The real question at hand is, when will the AOL bubble burst?
Or is there more to the Microsoft Worldcom AOL Triangle that will we find out when more people lose thier pension funds?
It is also a question, what is the real value of Microsoft? How much of it is hyperinflated, and what if it turns into another worldcom with cooked books full of accounting tricks. If it is anything like its partners, I would not be suprised if they were involved in such practices with them.
Also, Why is it that microsoft was interested in buying corrupt companies like Worldcom? [crn.com]
Suck consolidation (Score:3, Interesting)
In all seriousness, I'm sure that if these rumors are true, M$ is shopping for content. Can't imagine they've taken renewed interest in dial-up.
Well... (Score:3, Funny)
I wonder (Score:3, Insightful)
Comment removed (Score:5, Insightful)
Re:No chance. (Score:3, Insightful)
On the other hand, I cannot see the deal being that great for Microsoft. AOL is a dying division in AOLTW, their core market is in dialup
Re:No chance. (Score:2)
Re:No chance. (Score:5, Insightful)
It's not that they taint the truth they are reporting, but they just seem to leave out the other side of the story a little too often..
Well, this IS the Borg, after all... (Score:3, Insightful)
Of course they will. And resistance is futile. All AOL's Base Are Belong to MSN.
It'll take an antitrust ruling to kill this, because MS probably likes the idea of getting all thos AOL users (and IM users, too). For us Linux AIM users, heh, better hope Jabber spreads....