It was not very long ago that Microsoft was the clear king of software, the desktop and online, with Internet Explorer, MSN dial-up and Hotmail offerings but things have changed a bit in the last five or six years. Google has emerged and become an applications powerhouse and invaded the desktop space with its products like Picasa and Desktop Search. Yahoo has also been a solid player in the online space for ten years with its portal, search and mail offerings. Things might change even more in the near future with Microsoft.
According to a Wall Street Journal report last Friday, Microsoft has realized this and is rumored to be talking with AOL Time Warner to work out some sort of working agreement or possible 
acquisition. Investment bankers have not been involved yet so it appears the talks are preliminary but it would be interesting to see what a MSN/AOL merger would do to the landscape of the online space. You might these talks ironic since AOL and MSN used to be arch rivals in a heated battle to attract and lock up dial-up users. Though, the adoption rate of broadband and the settlement of an anti-trust lawsuit seem to have diluted that rivalry. Now they appear friendly with one another and could possibly to team up and take on Google and Yahoo. It will be interesting to see what happens next since the right type of move could vault them up the online space hierarchy.
5 Blogs Before Lunch points to an Ad Age Report on the potential impacts of an MSN/AOL merger. VOIP Now and Bloggoff also give their perspective on a potential deal. Finally, check out this Red Herring article for more information.
