Rumors Suggest Microsoft To Buy AOL

Shuttervoice > Rumors Suggest Microsoft To Buy AOL

On 06.06.10, In Business, News, by Praveen

Microsoft is set to buy AOL. This is the rumor spreading around after Business Insider Writer Nicholas Carlson hinted this. He reported that sources says that AOL is negotiating Microsoft to strike a deal.

The negotiation is more or less to sell the company on the whole. This deal is logical and Microsoft would definitely love to buy AOL. What this deal does for Microsoft is that it will increase its share in Search Engine Market. Apart from Google, other major Search Engines include Yahoo, MSN and AOL. So if AOL is owned by Microsoft then the competition will reduce to MSN and Yahoo with Google being a clear leader.
Microsoft To Buy AOL
Microsoft can also easily afford to buy AOL. Remember Microsoft’s offer to buy Yahoo for $30 a share. Yahoo and AOL were in talks for a similar deal but that didn’t turn up well in 2008. If Microsoft can strike this deal then they are more or less going to be profited from the Web Services that AOL offers. Its also going to be cost effective.

Though Microsoft would be hungry to buy AOL to increase Search Engine Share, Google is not interested in AOL and its content creation services. And rightly so, Google clearly tops the chart for Search Engine Market. Microsoft can afford to buy AOL as it will reduce costs and increase efficiency by this deal.

But other Tech Critics believe that this deal might never happen. Earlier, AOL was put up for sale by Time Warner just to find that no one was interested enough to buy. Its obvious that there were no takers. Even now, AOL’s quarter slumps need to be discussed by Microsoft deeply before going for a deal. AOL doesn’t seem to grow by itself and a takeover by Microsoft can just mean good things for the company.

Microsoft will be more benefited if they can buy AOL