VoIP Now: AOL and MSN discuss possible merger

September 17, 2005

AOL and MSN discuss possible merger

According to the Industry grapevine, AOL and MSN are contemplating a merger in the near future. The proposed deal is believed to be a fall out of the recent purchase of Skype by eBay. AOL, which is a trusted name in the Internet business, has not been able to perform to the satisfaction of Times Warner. Similarly, MSN hasn't added much value to Microsoft. A joint venture between the two should strengthen their existing properties and services.

Both the companies witnessed a hike in their share prices after speculations of their merger hit the market. AOL is also reported to be planning a full fledged VoIP service in the near future. The AOL-MSN union would lead to the combining of their instant messaging services, AIM and MSN Messenger. This would give them an edge in the messaging market, which is warming to some tough competition. Industry Experts believe a synergy between the two will prove to be positive.redherring.com reports:

"I could see the motivation for a deal between AOL and MSN," said Patrick Mahoney, senior analyst with the Yankee Group. "Both are being challenged by Google and Yahoo, and AOL is seeing its dial-up market share going away, so it has every reason to welcome a merger with MSN."