Microsoft Network (MSN) and America Online (AOL)
The rumors is that Microsoft is in talk to purchase AOL, or having majority stake, or join venture. Can these two entities benefit each other? On the surface it seems that Microsoft can benefit from gaining access to existing AOL customers and convert them to MSN users. If they like it enough to tell their friends about how good MSN is that may really help Microsoft gain ground against Google. But I don’t think acquisition is the way to fight the search battle. I think great innovation is the key and to do that they need to motivate their employees to believe and feel Microsoft is the better place to work than Google. From Time Warner’s perspective, AOL is a drag on the stock price. If they can sell AOL for decent price, Time Warner stock will take off.
It's not when you buy. It's when you sell!
