Posted December 21, 2005 4:55 pm by with 0 comments

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CNet looks at what plans Microsoft has now that it has lost the chance to partner with AOL.

There’s one statement that I diasgree with…

But given that AOL and Google have had a search engine agreement for three years, “at the end of the day, nothing much has really changed” for Microsoft, said Michael Gartenberg, an analyst at JupiterResearch. “From Microsoft’s perspective, the ability to do a deal with AOL would have been a good thing, but it was not a critical thing.”

The fact that “nothing much has really changed” IS the problem. This was a huge opportunity to not only jump-start MSN adCenter, but also steal market share from Google. With Google starting to hear murmors that they’re perhaps losing favor, the PR value alone would have been huge for Microsoft – they win, Google loses.

Sure Microsoft will move forward with its plans, but this is a huge blow on many counts.