Microsoft misses out on AOL as Google claims advantage
Microsoft has lost out in its bid to secure a stake in AOL or even cut a deal on paid advertising. Reports suggest that Google has taken a 5 percent shareholding in the ISP/portal for $1bn.
Microsoft seemed to hold all the aces until AOL’s apparent reluctance to sell a stake was leaked to the press by an insider. An initial proposal to merge the portal with MSN was dropped as too complicated.
Further reports claimed that Microsoft was seeking a deal to use the Time Warner company’s ad serving capability, which would have considerably enhanced its position in paid search. But Google, already the provider of search services to AOL, delivering 10 percent of its revenues, came up with the most enticing offer.
This is another blow to Microsoft’s ambitions to be a major player in paid search.
[Source: Yahoo News]
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POSTED IN: Corporate News
5 opinions for Microsoft misses out on AOL as Google claims advantage
William
Dec 21, 2005 at 4:53 am
Smells like an auction with one player bidding up the price with no intention of winning. Crazy like a fox me thinks.
Marti
Dec 21, 2005 at 4:09 pm
Microsoft buys Christmas
NORTH POLE - Microsoft announced an agreement with Santa Claus Industries to acquire Christmas. In the deal, Microsoft would gain exclusive rights to Christmas, Reindeer, and other unspecified inventions. In addition, Microsoft will gain access to millions of households through the Santa Sleigh.
The announcement also included a notice that beginning Jan 1, 2006, Christmas and the Reindeer names would be copyrighted by Microsoft. This unprecedented move was facilitated by the recently acquired MS Court.
Microsoft stated its commitment to “all who have made Christmas great,” and vowed to “make licensing of the Christmas and Reindeer names available to all.” It is believed that the guidelines for licensing these names, due before Halloween, will be very strict.
When asked, “Why buy Christmas?” Bill Gates replied, “Microsoft has been working on a more efficient delivery mechanism for all of our products for some time, but recognized that the Santa Sleigh has some immediate benefits. We’ll use it first for the release of our new Office suite and Windows Vista.”
In a multimedia extravaganza, the attendees were shown a seemingly endless video stream of products that make up the deal. It ended with a green and red version of the Microsoft logo, and a new Christmas trademark, leading into the announcement of the first product from the deal.
Vixen, the new Director of Holidays and Celebrations said, “The first step is to assimilate Christmas within the Microsoft organization. This will take some time, so don’t expect any changes this year.” She continued, “our big plans are for next year, when we release Christmas 2007. It will be bigger and better than last year.” She further elaborated that “Windows users who sign up with MSN will get sneak previews of Christmas 2007 as early as November first.”
Christmas 2007 is scheduled for release in December of 2006, though one unnamed source said that it is dangerously close to the end of the year and may slip into the first half of 2007. An economist at Goldman Sachs explained that a slip would be catastrophic to next year’s economy and the nation’s tax revenue, possibly requiring the IRS to move the deadline for filing income tax returns to three months after Christmas, whenever that was. “But it could be good in the long term,” he explained. “With Microsoft controlling Christmas, we may see it move to May or June, which are much slower months for retailers. This may serve to even out the economy over the year.”
When asked if other holidays are being considered, Mr. Gates explained that “Christmas is the flagship of holidays, so we wanted to start there. Not all holidays are available for sale, and the regaining will have to show a good long term business,” suggesting that holidays with a short history may not be in the plans.
Though specific terms of the agreement were withheld pending final FTC approval, a Santa official confirmed that the deal was “sizeable, even for a man of Santa’s stature.” Some analysts think that Santa has saturated the Holiday market, and is looking for a means to expand his business to year ’round products and services. Others contend that the Jolly Red Man is looking to retire in Redmond.
John
Dec 22, 2005 at 9:52 am
Marti, too close to true for comfort :-) Nah, not even Bill would pull a stunt like that, Steve Ballmer might though …..
Marti
Dec 22, 2005 at 11:17 am
You mean it’s not real?
{{snicker}}
Thanks for allowing it, I was afraid the moderator elves would whisk it away……..
Happy Merry Joyous Christmachanukwanzaa! LOL!
Peace and joy to you!
John
Dec 22, 2005 at 11:24 am
Reciprocated to you, Marti.
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