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Microsoft Shifts Focus to AOL: Is a Bidding War Next?

Posted Jul 16, 2008 11:57am EDT by Aaron Task in Internet, Media, Venture Capital, M and A, IPOs

AOL is shaping up to be the big winner of the latest breakdown in talks between Microsoft and Yahoo. Talks among all three firms is heating up this week after Yahoo rejected Microsoft's latest search bid, according to various reports.

"With its Platform A online advertising unit, along with still-strong communications and revived content assets, AOL is probably the best alternative both Microsoft and Yahoo have to each other," Kara Swisher, co-executive editor of AllThingsD.com wrote Monday.

Today, Swisher gives her insight on the latest round of talks in the accompanying video, including her predictions of the outcome for all players involved. Swisher also weighs in on the Congressional hearings over the proposed Yahoo-Google search deal and what it means for the industry and poor, little Microsoft.

29 Comments

- Wednesday July 16, 2008 01:09PM EDT

To Steve Balmer, Please, please don't buy AOL. AOL is DEAD, who uses AOL anymore ? Nobody except a few people still using dial up. You don't want dial up customers anyway. This would be a terrible waste of stockholders money.

- Wednesday July 16, 2008 01:22PM EDT

come on rlpaz62, its Aol Time Warner now. broadband internet, that has the largest market share in digital phone,internet, and cable services in America.

- Wednesday July 16, 2008 01:25PM EDT

MSFT invested in DSL about 10 yrs ago but the company went bankrupt, msft ended with nothing. At least AOL has a ton of money.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 01:30PM EDT

My first time visiting aol website after hearing about this. Never even thought it has a website that I could visit. Last use of aol was probably 10 ~ 15 years ago when all you could search in the dial-up page was their sponsored businesses.

- Wednesday July 16, 2008 01:39PM EDT

AOL has a much better ring to it than MSN. If they buy Yahoo and change the email domain to MSN, that's it, seriously, I'm gone forever. No joking.

- Wednesday July 16, 2008 02:01PM EDT

You are so biased Henry! You need to be more conscious about your guest or Aaron - you always talk over them.

- Wednesday July 16, 2008 02:31PM EDT

Monopolysoft a 13 on a Danger Scale of 1-10 and Google an 8. Everything that goes into Google and then some first passes through Monopolysoft (if you use Windows or Vista). I stopped using Monopolyware a little while back when it was fairly clear to me that they do not give out the source code to their vast controlling platforms so that the public can verify it. It's my PC we're talking about! If there is anything you want to have control over it is your PC. I try hard not to have closed Monopolyware touch my valuable data.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 02:58PM EDT

C'mon, Steve Balmer, we both know the name of the game is Developers! Repeat after me, deveolopers, developers, developers, developers! http://www.youtube.com/watch?v=8zEQhhaJsU4

- Wednesday July 16, 2008 03:11PM EDT

Buy VCLK. MSFT bought AQNT and AQNT wanted VCLK.

- Wednesday July 16, 2008 03:15PM EDT

The only company capable of giving MSFT a real standing in the target market is YHOO. Others are far too small to even make a dent in GOOG's market share. Let's face it, the fundamentals are there, the only reason why this deal hasn't gone thru is because of two stubborn CEOs and one bully latecomer who has only made matters worse. If only they could find the right people to do the negotiation, then everyone will win, but GOOG, the only winner so far.

- Wednesday July 16, 2008 03:16PM EDT

The only company capable of giving MSFT a real standing in the target market is YHOO. Others are far too small to even make a dent in GOOG's market share. Let's face it, the fundamentals are there, the only reason why this deal hasn't gone thru is because of two stubborn CEOs and one bully latecomer who has only made matters worse. If only they could find the right people to do the negotiation, then everyone will win, but GOOG, the only winner so far.

- Wednesday July 16, 2008 03:19PM EDT

The only company capable of giving MSFT a real standing in the target market is YHOO. Others are far too small to even make a dent in GOOG's market share. Let's face it, the fundamentals are there, the only reason why this deal hasn't gone thru is because of two stubborn CEOs and one bully latecomer who has only made matters worse. If only they could find the right people to do the negotiation, then everyone will win, but GOOG, the only winner so far.

- Wednesday July 16, 2008 03:31PM EDT

why dont we just let micorsoft buy aol and yahoo both

- Wednesday July 16, 2008 03:32PM EDT

Wow, if you cannot have Yahoo! at a cheap price then you go after AOL to reduce chance of a yahoo!- AOL merger. Maybe you put more pressure on Yahoo! to get a deal done or MSFT or will blackmail them and get the gem AOL. GEM? Why does Time Warner want to get rid of them so bad??? They are flush with cash as a previous poster indicated, and Time Warner does not need it that is why they want out? Am I missing something here? Note: to MSFT spend the money what Yahoo! is worth($37) and then you can make the push and continue to grow your company. Or just break up into a software/game company and realize some profit potential for the shareholders who are looking for growth and a much better return on their investment of MSFT. MSFT is looking as stodgy as the IBM of old.

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 16, 2008 03:33PM EDT

Wow, if you cannot have Yahoo! at a cheap price then you go after AOL to reduce chance of a yahoo!- AOL merger. Maybe you put more pressure on Yahoo! to get a deal done or MSFT or will blackmail them and get the gem AOL. GEM? Why does Time Warner want to get rid of them so bad??? They are flush with cash as a previous poster indicated, and Time Warner does not need it that is why they want out? Am I missing something here? Note: to MSFT spend the money what Yahoo! is worth($37) and then you can make the push and continue to grow your company. Or just break up into a software/game company and realize some profit potential for the shareholders who are looking for growth and a much better return on their investment of MSFT. MSFT is looking as stodgy as the IBM of old.

- Wednesday July 16, 2008 04:41PM EDT

Anybody here ever looked at Time-Warner's assets? Check out TWX! [For starters . . . consider CNN, New Line Cinema, Warner Bros, People Magazine, Time Magazine, Entertainment Weekly, Sports Illustrated, Time-Warner Cable . . . and, of course AOL, among others.

- Wednesday July 16, 2008 04:43PM EDT

Anybody here ever looked at Time-Warner's assets? Check out TWX! [For starters . . . consider CNN, New Line Cinema, Warner Bros, People Magazine, Time Magazine, Entertainment Weekly, Sports Illustrated, Time-Warner Cable . . . and, of course AOL, among others.

- Wednesday July 16, 2008 04:49PM EDT

It always amases me that these talking heads that like any merger. Look ro the future just a little and see all of the real people whose lives are effected when two companies merge. Conpanies like Microsoft, Google, EnxxonMobil, and Chevron only have these huge warchests of cash because they are monopolies (or at least oligolopies) and have been gouging the rest of us since time began. The Justice Department should be going after all of the biggest firms and breaking them up into smaller companies. These mega mergers should not be allowed. When AT&T was split up it was a good thing. Allowing these companies to merge again was a mistake.

- Wednesday July 16, 2008 05:02PM EDT

melba toast

- Wednesday July 16, 2008 05:27PM EDT

What a mess!!! Yahoo is the only company that have a fight chance with google. Good luck to Microsoft for trying!

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