Yahoo Joins Party for Stake in AOL



Yahoo Joins the Party for Stake in AOL
October 14, 2005

By Shelley Solheim
Yahoo Inc. has reportedly joined the party of technology companies
looking to get a piece of Time Warner Inc.'s America Online division,
according to published reports today.

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Yahoo, MSN to Form World's Largest IM Community

"What next, we'll see AOL up on eBay?" quipped Ian Campbell, president
and CEO of Nucleus Research, in Wellesley, Mass.

"Yahoo would gain the same benefits as Microsoft or Google. There's a
lot of people using AOL," said Campbell. "I guess the question is do
they have the deep pockets."

Others saw it as mainly a defensive move against Google.


"For Yahoo, it's more of a block," said Rob Enderle, principal for The
Enderle Group, in San Jose, Calif. "They'd rather take it than have
Google get it."

The move follows Yahoo and Microsoft's announcement earlier this week
of plans to link up their IM networks.

Yahoo Messenger and MSN Messenger users will be able to, starting in
the second quarter of 2006, exchange instant messages and eventually
make PC-to-PC voice calls between the services, said officials for both
companies this week.

Yahoo, MSN to form world's largest IM community. Click here to read
more.

Public IM interoperability has long been a request from users, but some
said that without AOL and others in the game, users will still face
many of the same pains.


"It is a step in the right direction, but additional partnerships, such
as with AOL, are required to reach the masses," said Joe Gimigliano,
systems director for IT security at Purdue Pharma LP, based in
Stamford, Conn.

Neither Yahoo or Microsoft would comment on whether it plans to team up
with AOL to make their services interoperable, but of course that could
all be about to change.

Check out eWEEK.com's Messaging & Collaboration Center for more on IM
and other collaboration technologies.

Copyright (c) 2005 Ziff Davis Media Inc. All Rights Reserved.

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