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Industry Trends

Microsoft Resumes Talks With AOL

By July 21, 2008July 30th, 2023One Comment

The Wall Street Journal reported last week that Microsoft and AOL have resumed discussions with each other, to try and come to a mutually beneficial agreement on a search-related deal.

It is believed that the meeting was organised following the breakdown of talks between Microsoft and Yahoo! yet again.

Microsoft has been trying hard to improve their position in the search market, due to which they have held negotiations with Yahoo! repeatedly. The board of directors at Yahoo! have staunchly held on to their wholly unreasonable anti-Microsoft stance, causing the Redmond-based software giant to seek alternatives.
AOL, in the meanwhile, has been holding talks not only with Microsoft, but also with Yahoo!, as its parent company Time Warner Inc. is trying to sell off all or part of AOL to the highest bidder. Google, which is a competitor to both Yahoo! and Microsoft, has a 5% stake in AOL, and also has a broad advertising partnership with Yahoo!

The Wall Street Journal has not revealed its sources, but says that the talks between Microsoft and AOL are still at a preliminary stage, and were about the online operations of both companies. Officials of both the firms involved have refused to comment.

It is also reported that investor Carl Icahn, has further intensified his efforts to have the entire board of directors of Yahoo! replaced during a shareholder vote on August 1, following the latest failure of talks between Yahoo! and Microsoft. The following weeks could once again shape the future of the search market.