Microsoft is stepping up an attempt to possibly buy
AOL following its failed bid to acquire
Yahoo.
The
Wall Street Journal reports Microsoft and AOL executives were
expected to meet in Seattle on Wednesday to discuss a possible
deal.
News of the talks follows Yahoo's own interest in AOL, which
could possibly see the Time Warner-owned AOL rolled into the Yahoo
business, and Time Warner taking a minority stake in the combined
outfit.
AOL is rapidly losing subscribers to its paid-for internet
services and is well behind Yahoo in the internet advertising
market. It has shed thousands of staff in response to its poor
performance.
Microsoft however may see a slimmed-down AOL as a cheaper way to
buy a respectable share of the online market, while hoping the
strong AOL brand can be used to build its overall share
further.
AOL recently acquired social networking site Bebo, which added
40 million users to its online community, something Microsoft would
be interested in too.
Microsoft has complained to US legislators that the closer
business ties Yahoo has recently established with Google, following
Yahoo's refusal to be bought by Microsoft, are potentially
anti-competitive. Which may seem ironic to some Microsoft
watchers.
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