AlanBarber.Org
Thursday, May 29, 2003
Microsoft pays AOL $750 million...
MSNBC is reporting that Microsoft has settled an antitrust lawsuit with AOL.Microsoft will pay $750 million to AOL Time Warner. However as usual it's probabbly more of a win for Microsoft than AOL... The rundown goes something like this...
- Microsoft pays AOL $750 million to end the lawsuit
- AOL will use MS windows Media Player 9
- AOL gets to keep using IE as their browser for the next 7 years free of charge
- Microsoft and AOL will look into connecting IM services
- Microsoft will bring some AOL engineers into the MS campus
- Microsoft will help distribute AOL software to OEMs
Interesting how even though Microsoft ends up paying a rather large sum it's the other parts that are probabbly worth more in the end.
I'd like to make 3 points...
1) The whole reason AOL filed the suit was becuase they bought Netscape. Yet even after the win they'd rather use the Internet Explorer core for their AOL browser?
2) Then you must remember that AOL also bought WinAMP mp3 player. Yet instead of using their own technology they'll be using Microsofts Media Player.
3) "The companies will explore ways for AOL and MSN Messenger to interoperate." So in a similar light AOL has their own technology but are willing to use/share Microsoft technology over their own.
The bottom line in my opinion is that these 3 points are worth more in the long run that $750 million. Microsoft still gets to keep their monopoly in the browsers, they get to expand their control of the media player market, and possibly get access to millions of new users through instant messenger.
Anyone that says the MS heads are stupid sure needs to take a look. I'd say the boys over at AOL were asleep at the wheel on this one!
on 05/29/2003 at 08:31 PM