Microsoft Corp. and Yahoo Inc.'s
move to make their instant messaging programs work together comes just
as the popular communications tool is beginning to expand into such
fields as video chatting and Internet telephone functions.
But
for now at least, the two companies said their partnership announced
Wednesday will focus on traditional instant messaging, allowing people
with either system to send lightning-fast messages to each other. That
is expected to be in place by June 2006.
Eventually, the companies said, they hope to be able to let users
make computer-to-computer phone calls as well, but they couldn't say
when that would happen.
The partnership could give the companies more power to compete
against market leader America Online and perhaps dark horse Google
Inc., which launched its own service, Google Talk, in September. In the
long run, it may also provide a way to battle companies like Skype
Technologies SA, the Internet phone provider being acquired by eBay Inc.
Yahoo Chief Executive Terry Semel called it "a turning point for the
IM industry," which has taken years to work out ways for users of rival
services to connect to each other.
The companies did not disclose financial terms.
The Yahoo-Microsoft partnership gives the companies nearly as many U.S. users combined as AOL has in total.
Analysts said the move could put pressure on Time Warner Inc.'s AOL, the most popular service.
"Up until now, AOL has been able to pick and choose its partners,
command the royalties it wants," said Robert Mahowald, an analyst with
research firm IDC. "They've moved to develop this market at their own
pace. This forces them to take a more aggressive stance."
AOL's instant-messaging product, AIM, had 51.5 million unique U.S.
users in September, compared with about 27.3 million for MSN Messenger
and 21.9 million for Yahoo's Messenger, according to Nielsen/NetRatings.
Instant-messaging services are popular with business users, teens
and others because they let people communicate quickly and easily over
the Internet, much like a regular conversation. The systems are only
expected to grow more popular as they add more sophisticated tools,
such as the ability to place calls or have video chats.
Other instant messaging products, such as Trillian, allow people to send and receive messages from multiple IM services.
But none of the top instant messaging systems have communicated
directly with each other until now, though promises of
"interoperability" have been made for some time. Yahoo, based in
Sunnyvale, Calif., and Redmond, Wash.-based Microsoft said that it's
one of the top things customers ask for.
Dan Rosensweig, chief operating officer with Yahoo, said in a
conference call with analysts and journalists that the deal is the
culmination of discussions that have been ongoing "for years."
"IM interoperability is the right thing for our customers, our
businesses and the industry as a whole, and Microsoft is delighted to
help lead these efforts with Yahoo," Microsoft Chief Executive Steve
Ballmer said in the release.
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. Blake Irving, corporate
vice president with MSN, would not comment Wednesday on any possible
discussions with AOL.
"I think what's really pushing this is Microsoft's ability to see
that it's long been playing cat and mouse with AIM and ICQ (another AOL
instant messaging service)," Mahowald said. "Microsoft needs to stake
its presence in a big way."
Microsoft already has a product that lets business users send and
receive messages from Yahoo, AOL and Microsoft's instant messaging
systems, but the product does not extend to general consumers.
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AP - Apple Inc. founder Steve Jobs, a survivor of pancreatic cancer whose gaunt appearance in the past year has alarmed the Mac and iPod lovers who look to him as an oracle, said Monday he has an easily treated hormone imbalance and will remain in charge of the company.
AP - The recession figures to tone down the flashiness of this week's International Consumer Electronics Show, but the lineup of innovative products likely will measure up to those of past years.
