AOL and Time-Warner Merge (Part 3 of 4)
In this Jungle, this Quiet Jungle, the Lion Sleeps Tonight: Wither
Microsoft?
What can Microsoft be expected to do in response to this deal? It could
acquire a media company; but the number remaining with the muscle and size of
Timer-Warner are limited (Disney and possibly News Corporation top the list).
But one has to think that Microsoft’s response will be muted in the face of
ongoing scrutiny by the Department of Justice.
Ultimately, Microsoft may simply not respond in-kind to this deal. It may be
that Microsoft does not share the prevailing wisdom regarding the convergence
of old-line media and new-age Internet. The component of the deal that will
pique its interest, however, will be AOL’s access to Time-Warner’s broadband
cable network.
Our guess: Microsoft rides this out, waiting to see how the deal really
comes together, while leaning on its NBC relationship for traditional media and
potentially expanding the broadband alliances.
Part 4 - Net/Net
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