Bonum Certa Men Certa

AOL Takeover by Microsoft is Just a Rumour from One Unnamed Source

America Online logo



Summary: Catchup with Internet news; AOL is reported to be considering a Microsoft takeover and its new CTO, Alex Gounares from Microsoft, possibly contributes towards this

ON THREE occasions in the month of May we warned that Microsoft was increasing its influence inside AOL [1, 2, 3]. Alex Gounares, who had worked with Bill Gates, joined AOL where he immediately became the chief technical officer. It is hard to tell whether one man alone can have that much impact, but it definitely contributes to overall judgment, which involves several minds.



There is one single report suggesting that Microsoft might buy AOL. "If Ballmer really does try to buy AOL, the shareholders should revolt," says our reader Ryan Farmer, who further argues that they should "force him out."

AOL, which currently outsources search to Google, began negotiating a new search deal last week, CEO Tim Armstrong said yesterday at the D8 Conference out in California.

Tim is just being coy. AOL isn't negotiating a search deal. It's negotiating a sale.

A source familiar with Tim and AOL's strategic thinking suggests that an outcome of these negotiations could be AOL's sale to Microsoft.


That source is not named and this is the bit which everything else is hinged on. This Business Insider report also appeared here, but it's the exact same report and we try to narrow down the possibility that there are independent reports independently agreeing. A copy of this article also appeared here in Forbes. These are all the same article. The Microsoft de facto PR folks cite Business Insider:

AOL Chief Executive Tim Armstrong this week said the company is beginning talks on a new search deal, but a speculative report at Business Insider suggests that the company could end up selling itself outright to Microsoft.


Another new perspective:

The headline of the day proclaims that Apple is both the “new AOL” and the “new Microsoft” but neither comparison holds water in the larger view. America Online made getting onto the internet possible at a time when the rat’s nest of other geeks-only options made it otherwise literally impossible for most consumers, but AOL never offered a subsequent ounce of innovation and was before long passed up in usability by nearly every other internet option on the market.


The report from Business Insider had enough impact to affect the stocks:



TechFlash called it just a "rumor" and acknowledged that stocks should not be affected. A lot of the mainstream press did not take this rumour seriously enough to report on it. After all, it's just a single source which caused all of this (unnamed source referenced/quoted) and there is no apparent corroboration. So again, it's just a rumour.

Microsoft to buy AOL? That's the rumor being floated by Business Insider's Nicholas Carlson, who reports that insider sources have suggested that AOL's next big search negotiation—as announced at this week's D8 conference—is anything but.


This whole discussion comes about because AOL's Google deal ends. AOL executives are not just looking at Microsoft; they also speak to Google [1, 2] and look at their choices now that Microsoft extinguished/killed Yahoo! -- to the point in fact where Yahoo! executives report to former Microsoft executives (see this coverage from Joab Jackson and others [1, 2, 3]). There is a lot of coverage about Yahoo!'s new CTO and the new management from Microsoft that he'll report to [1, 2]. It's like Microsoft is speaking on Yahoo's behalf now, but then again, both are diminishing, just like AOL. None of these is a growth company. How about VMware/EMC? A "Hyper-V technical architect at EMC" writes about EMC's relationship with Microsoft while Eric Savitz reports on Microsoft's fear of VMware (which is run by former Microsoft employees and EMC after disruptive intervention). Last week we showed how Novell helps Microsoft in HPC and there is still some more coverage about that. It's all just a good lesson about the impact of hiring from Microsoft.

Microsoft's losses online are quite significant:

Microsoft has lost more money on the web than any company ever (we think). Since 1998, it lost over $10 billion in the online services division. We think it's fair to say Microsoft doesn't get the web.


According to some reports, Microsoft tries using Apple to compete against Google.

Well, Microsoft has already released a Bing iPhone app and its uptake has been relatively strong, but in terms of search engine optimisation, the relatively new service is still lagging behind its main rivals Yahoo and Google.


Microsoft's deal with Verizon [1, 2] shows the piggybacking Microsoft has already attempted as it now tries using Apple [1, 2]. "Bing will be featured in Safari 5 as a search option," Ryan Farmer tells us based in the news which extends even further. When it comes to Internet Explorer, Microsoft is in a tough position, so it resorts to silly ideas and the Seattle Times uses the word "open" in s slightly deceiving way. The good news for the Web is this:



Microsoft’s oft-lamented browser, Internet Explorer 6, may finally be put to rest. This will make many a Web developer happy – but also Microsoft itself.


Opera seems to be doing OK too, especially in particular areas of the world.

No. 1 in Kazakhstan, Uzbekistan and Belarus. It might not be a slogan to attract an avalanche of American Internet users, but the Norwegian company that makes the fastest Web browser you've never heard of sees a major opportunity in the United States and the rest of the world.


One area where Microsoft is still hurting the Web a great deal is Silver Lie, which is buggy:

Note: Much to my surprise, my Silverlight version went down, from 4.0.50541.0 to 4.0.50524.0, after I installed this update on a Vista system. I reported this to Microsoft through normal support channels and will report back with results.


Fortunately, Silver Lie never really took off and Web video may change with wider adoption of HTML 5. These RIAs are mostly being used because of video.

Recent Techrights' Posts

A radical proposal to keep your personal data safe, by Richard Stallman
"The surveillance imposed on us today is worse than in the Soviet Union. We need laws to stop this data being collected in the first place"
An Update About Soylent News, With Jan Rinok "Back in the Saddle"
Burnout or "near burnout" a possibility when having to curate abuse
Rejecting 'Snoop-Phones' and Turning "Old" Phones (or Tablets) Into Freedom-Respecting Appliances
Paul Fernhout (pdfernhout.net) wrote back to Akira Urushibatathis this past weekend
 
The African Lion and the American Cowards
Safaris exist for people to watch and enjoy animals
Amazon Web Shenanigans Perfectly Timed for Today's Talk by Richard Stallman
Maybe listen to him instead of looking for excuses to ridicule the messenger
Mission:Libre Has Taken Off (Project by Carmen Maris)
there will be a lot more to report on next month (after the event)
Techrights to Publish More EPO Leaks Next Week
We're meanwhile also doing lots of work on search, whose interface now looks better
Links 21/10/2025: 'The Lost Art' of Neon Signs and Twitter (X) to Enable Identity Theft (or Handle Theft) as a Service
Links for the day
Plagiarism With LLM Slop: Hindustan Times (HT Digital Streams Limited) Has Become a Slop Factory/Hub
What a disgrace
Next Week We Launch Search at Techrights
We're planning to launch it some time next week. Maybe Tuesday, maybe Thursday.
Talk by Richard Stallman Will be Live-streamed in Less Than 10 Hours
Happy hacking
"No Kings" in the Software World (GAFAM Should Not Exist, Either)
"No Kings" is a good slogan. Let's start by ridding ourselves of masters, not only those who reside in DC or visit DC
Every Morning
Bugs/edge cases combined with automation can spell disaster
Insane, Deliberately Dishonest, or Just Another Bigot?
very intellectually-dishonest human being
A Lot of Techrights is Built on Perl
Perl also runs the sister site
The Register MS Selling Slop for Microsoft (Vapourware, Ponzi Scheme, False Claims)
What will be left of The Register MS if it keeps repeating falsehoods and looking to profit from Ponzi schemes?
analytics.usa.gov Says Less Than 14% of Web Requests (to Government Sites) Come From Vista 11
Vista 11 was released more than 4 years ago!
People Who Attempt to Take Down Correct Information Need a Doctor a Day
“Journalism is printing something that someone does not want printed. Everything else is public relations.” ― George Orwell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 20, 2025
IRC logs for Monday, October 20, 2025
Vista 11 is Sinking While Microsoft is PIPing (Mass Layoffs But Silent Layoffs)
We're witnessing a shift in platform dominance
Richard Stallman is Having a Good Week Already (Stallman Was Right About 'Clown Computing')
That alone is worth bringing up in his talk
When Prominent GNU/Linux Distros Are Run by Spies
What has Microsoft Canonical become?
More Publishers and Companies Nowadays Say "GNU/Linux", Not "Linux"
It's not to see InstallAware saying GNU/Linux this week
Google News is Now Promoting a Parasitic Slopfarm Called "findarticles.com", Where Plagiarism of "Linux" Articles is Rampant
Does Google even care about the slop epidemic? Google itself is a vendor of slop now (and it calls it "Gemini")
Gemini Links 20/10/2025: Pumpkin Carving, "Hey Hi", and Other Buzzwords
Links for the day
Slopwatch: Google News Promoting Fear, Uncertainty, Doubt (FUD)
What is the value of Google News if so many results in it are fake 'articles?
Our Uptime This Year Was Better Than AWS (Also a Lot Cheaper)
We never used "the cloud"
Amazon Web Shenanigans
An ongoing, experimental endeavour
Death of Elias Diem: FSFE mailing list archives hidden
Reprinted with permission from Daniel Pocock
Links 20/10/2025: Louvre Museum Reveals Weakness, About 7 Million Protest US Turning Into Oligarchy/Monarchy
Links for the day
They Should Have Listened to Techrights Over a Month Earlier (Xubuntu Site Compromised)
we reported this issue about 40 days earlier and nobody did anything about it
Richard Stallman to Give Another Talk Today in Bavaria (Bavarian Academy of Science)
Tomorrow at 6 PM he speaks in Munich
Apple is the Company of Dictators and Worse
Apple is just another greedy corporation in search of sweatshops and even pedophiles (especially the high-profile ones)
Counting Unhatched Eggs Is Not Counting Chickens
Everything here will persist as normal
Barry Kauler Explains That Puppy Linux and EasyOS Exclude Systemd to Keep Things Simple
Barry Kauler's Puppy Linux is in the community's hands. He now focuses on EasyOS and more.
The "Infinite Bread"
The biblical story of Jesus feeding the 5,000 has software parallels
Half a Year After Brian Fagioli Got Kicked Out of BetaNews for Slop He's Still Doing LLM Slop and Slop Images Targeting 'Linux' (Plagiarising Original Works)
If the Web gets polluted or flooded by slopfarms such as these, and Slashdot then sends traffic so these slopfarms (Slashdot probably doesn't do this intentionally), then real writers with real knowledge of GNU/Linux will lose the spark for publishing
In Many Cases and in Many Different Ways, Technology Became Less Durable and Less Reliable Over Time
The "modern" things are more complex. And complexity is a foe or reliability and repair-ability.
Microsoft's LinkedIn is Losing Money, Traffic, and Hope; Now It Wants to Sell Its Users' Lifeblood (and Data)
Let this be a reminder of what social control media really is about
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 19, 2025
IRC logs for Sunday, October 19, 2025
Campaign of FUD Against Framework Laptops and GNU/Linux (Using Microsoft's Attack on Linux, 'Secure Boot')
Ritual Defamation Cult has turned its attention over to Framework
Microsoft Lunduke: Freedom of Speech Means Spreading What I Have to Say and Banning People I Disagree With
4Chan is one he aims for and he is siccing 4Chan trolls at people he doesn't like
Liberation From 'The Feed'
They rank things based on the editor's choice/ideology (he or she knows the sponsors, hence the masters)
Microsoft's Killing of Vista 10 Seems to Have Resulted in More Articles About GNU/Linux (But Also FUD)
We not only saw a rise in traffic, we also saw a remarkable rise in the number of articles
Today (a Day Before Richard Stallman Talk at TUM) There's a Patent Propaganda Event at TUM
Perhaps an opportunity for Dr. Stallman to rebut this "invention to patent" nonsense/fantasy (conflating monopolies with innovation)
OpenSource or "Open Source" as a Brand is Dying, Let's Get Back to Talking About Software Freedom
Those of us who actually want to reform the industry and put users in control of their systems/devices will recognise that "Open Source" was selling a lie or got-co-opted by liars
19 Years in Numbers: Techrights' Anniversary Countdown and Retrospective
In 2019 we began improving our workflows and, accordingly/predictably, we became a lot more productive
Slop Turns People Off (LLMs Lack Intelligence, They're Just Plagiarism Powerhouses That Fail to Deliver Any Real, Measurable Value)
"More" (or "MOAR") isn't always better
IBM Red Hat Has Re-calibrated or Adjusted to Bubble Economics, False Promises, and Slop/Plagiarism
This won't end well
Fake Numbers, Fake Claims, Fake Economy, and Media Grifters That Prop Up Fraud
Grifters like The Register MS won't be looked upon kindly after the bubble implodes
For Some, the GNU Web Site is Not Accessible This Week
They seem to have gone into some kind of lock-down mode
Richard Stallman Back at the "Rudolf-Diesel" Hörsal "MW 2001" in About 40 Hours
He spoke there before; there's a very high seating capacity there
Symptoms of Upcoming Microsoft Layoffs in XBox
A crashing franchise
Psychiatrist confession: Germanwings crash & Debian toxic culture recognized before suicides
Reprinted with permission from Daniel Pocock
Gemini Links 19/10/2025: Scentjacking 101, Slop Hype Boosters, and Steam Next Fest
Links for the day
Slopwatch: The Serial Slopper, LinuxSecurity, and Google News
Let's hope slopfarms die as soon as possible
Links 19/10/2025: Cambodia Scam Centres, Slop Hurting Wikipedia Traffic
Links for the day
As Economies Crumble Free as in Beer Will Matter, Not Just Free as in Freedom/Libre (Libertad)
French regions choosing to embrace Software Freedom
25 Years Ago, an Explanation of How Reducing Free Software to 'Apps' Would Interfere With Freedom Goals
there's nothing unreasonable about it
A List of 63 Known Gemini Clients (Software to Browse Geminispace Content With Gemini Protocol)
Not counting browser plugins for Web browsers
Gemini Links 19/10/2025: "Firma Odin Is Transforming" and Bot Attacks While "AFK"
Links for the day
US Government: 6.1% of Site Visitors Use GNU/Linux
GNU/Linux has a considerable share and it is growing
LLM Slop Could Not Rise to Prominence Without Media Complicity and Artificial Hype
Inane garbage disguised as "journalism"
Why the FSF No Longer Recommends Debian, as Explained by Richard Stallman This Month
some weeks ago
All the Latest Half Dozen Articles by Mehedi Hasan (UbuntuPIT) Only Admit at the End That He's Using LLM Slop
Disclosure is OK, but the practice of using slop is not
The 'Modern' Web of Fake Security and Easy Censorship of Whole Domains
Each year it gets worse
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 18, 2025
IRC logs for Saturday, October 18, 2025