AOL-Microsoft? Not Likely, Just Logical
from the makes-sense dept
While the chances of it actually happening are incredibly slim, Business Week makes the case that it would help both companies tremendously if AOL-Time Warner sold AOL to Microsoft. It would help boost MSN, clearly, but also creates a bunch of other synergies. Microsoft definitely does a better job in handling email (both on the client side and via the web) and they could improve the user experience. Microsoft has also done more to get people signed up for broadband. More importantly, though, is that by taking control over AOL's customer list, Microsoft could be able to build up their new Xbox Online service much more quickly than planned. On the Time Warner side, it would let them get rid of AOL, which they still don't know what to do with anyway. Of course, the Department of Justice might not be so happy with the idea, but Microsoft has shown an ability to wear them down in the past... Of course, it would also give many geeks a single entity at which to direct their hate, instead of having to split their distaste between Redmond and Dulles.
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Ack!
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Incompatibilities
Plus, neither company is based in Silicon Valley, so they will each operate from their provincial perspectives. The physical distance between Dulles and Redmond is going to pose a problem too. At least AOLTW was based in DC/NY areas, which was just an hour's flight.
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