Microsoft grabbing AOL to cut off some of Google's partner revenue?
Tags: Microsoft, Google, Marketing, AOL
This post from paidcontent.org argues that Microsoft teaming with AOL is really intended to eliminate AOL as a Google customer, thereby cutting off a substantial portion of its revenue. I have to say, this is probably the first time I've seen an argument that makes that deal make any business sense.
But I do have a little question for Microsoft CEO Steve Ballmer: how does this enhance Microsoft shareholder value? Because after you've taken over AOL, you will have a ton of customers and service costs that MSN doesn't have today. And last time I checked, both AOL and MSN are currently money-losing services. So you'll pay a bunch of money to hurt a competitor and you'll lose more money at MSN every year as a result. It will be interesting to see how you market the value of this to both your investors and the public.
This post from paidcontent.org argues that Microsoft teaming with AOL is really intended to eliminate AOL as a Google customer, thereby cutting off a substantial portion of its revenue. I have to say, this is probably the first time I've seen an argument that makes that deal make any business sense.
But I do have a little question for Microsoft CEO Steve Ballmer: how does this enhance Microsoft shareholder value? Because after you've taken over AOL, you will have a ton of customers and service costs that MSN doesn't have today. And last time I checked, both AOL and MSN are currently money-losing services. So you'll pay a bunch of money to hurt a competitor and you'll lose more money at MSN every year as a result. It will be interesting to see how you market the value of this to both your investors and the public.
posted by Carl Howe at
10:04 AM
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