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Microsoft-AOL: Where Is Your God Now?

Microsoft (MSFT) and Time Warner (TWX) are finally getting around to finishing up the joint venture talks they began back in … oh, September of 2005. While no transaction is imminent, the two companies are said to be “casually” discussing a possible combination of Microsoft’s online operations and AOL–perhaps even at this very moment. Silicon Alley Insider reports that executives from both companies were scheduled to meet in Seattle sometime today.

Meanwhile, Yahoo (YHOO) continues to pursue its own discussions with AOL. With its annual shareholder meeting fast approaching, the struggling Internet company is scrambling for something, anything, with which to distract shareholders from the travesty of the past few months.

News of developing talks between Microsoft and AOL, and AOL and Yahoo, was first reported in BoomTown on Monday.

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Another View

Kara Swisher

So while all the attention is on who Microsoft is hunting next--after its latest parry at grabbing Yahoo's search business was foiled once again--has settled on Time Warner's AOL, as BoomTown reported Monday, it would be a mistake to assume that the software giant is not still aiming directly at Yahoo. Why? Because it must, and not only for the reason--to get control of its Yahoo's #2 search business--that has been much focused on. It's also Yahoo's strong display advertising business that Microsoft is clearly after.

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John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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