Thi has to be as a result of the impact of Google on things. Both MSN and AOL would clearly benefit and be stronger — in online advertsiing, content and in rich media delivery.
According to two sources familiar with the matter, Time Warner is in talks with Microsoft about selling the stake in AOL and then combining it with Microsoft’s Web unit MSN.
Under the plan being considered, Microsoft would pay some money to Time Warner for the AOL stake, leaving the two companies approximately equal partners in the venture. [New York Post]
Yahoo has certainly stepped it up lately as well so I don’t want to underestimate their impact on traffic and page views to the potential business of AOL and MSN. Regardless this news / rumor is just an amazing potential event given the hatred the two services have shown for each other in the past in the dial-up era.