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Wednesday, October 12, 2005

Microsoft, Yahoo reach IM deal


Microsoft Corp. and Yahoo Inc. have agreed to make their two instant-messaging programs work together, a partnership that could threaten market leader America Online, people familiar with the situation said.

A Yahoo-Microsoft partnership, allowing users of the competing services to exchange messages seamlessly, would give the two companies nearly as many users combined as AOL has in total.

Microsoft already has a product that lets business users send and receive messages from Yahoo Inc., AOL and Microsoft's instant messaging systems.

Microsoft, Yahoo and AOL, a division of Time Warner, Inc., all declined to comment.

AOL's instant-messaging product, AIM, had some 51.5 million unique U.S. users in September, compared to about 27.3 million for the competing MSN Messenger and 21.9 million for Yahoo's Messenger, according to Nielsen/NetRatings.

Redmond-based Microsoft has long sought to forge some sort of deal to boost the profile of MSN Messenger. The company also has been in talks with AOL over possible partnerships with Microsoft's MSN online unit, although it's not clear where those talks stand now.

Resource: News14Caroline

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