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Wednesday, October 12, 2005

Yahoo & Microsoft To Merge Instant Messenger (IM) Networks

MSN and Yahoo Shifting the way IM works.
Microsoft and Yahoo are ready to annouce a deal that will rock the instant messaging world; the two giants are planning on linking their instant messaging networks. This joint network will help them control about 40% of the market according to analysts with AOL Instant Messanger (AIM) still controlling over 50% of the market.

This move could have an even bigger impact then just on the instant messaging industry. If the talks about Microsoft buying AIM from AOL are still moving foward, Microsoft could potential control 90% of the Instant Messaging market. Add this to the 88% of the browser market owned by Microsofts Internet Explorer and the 85% of the PC operating system market controlled by Microsofts Windows, that equal a lot of potential contextual ad space and potential searches!

Even with Google's own IM client, Google Talk, they are going to find it extremely hard to penetrate this market in order to serve their ads, especially with a subpar IM client like Google Talk. I would not be surprised to see Google push harder in their also reported talks with AOL about AIM in order to secure a spot in this potentially lucrative market. If they don't move swiftly the barriers to entry maybe too much even for Google to overcome.

By Jason Dowdell at 04:10 PM | Comments (0)

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