Microsoft made more news today by pulling out of its 1996 joint venture that was MSNBC.com (Microsoft + NBC News, now owned by Comcast) with NBC buying Microsoft's 50% share.
Whilst both companies have said they want to get on with their own online news agenda, it would seem that Microsoft have its own news agenda and plans.
Up to now, Microsoft for example had to feature the news feed on all of its inventory and it's well believed that NBC's "liberal" (pro-Obama) agenda was not well liked. NBC always sees itself as the opposite viewing choice to pro-Republican Fox News. It also meant that Microsoft couldn't offer other alternative news feeds, or indeed its own, exactly as AOL/Huff Post has done or The CNN/Mashable alliance/acquisition.
It's widely believed that this represents another poor Microsoft online venture (they've lost 10 billion usd online in recent years) having paid 220 million usd into it, it's believed it received 300 million usd back (just about the capital + interest). Equally of course, the corrollary is true - this allows NBC News to supply its content to other non-Microsoft websites and the divorce is being seen as "amicable".
Although to be fair, in 2002, Microsoft CEO Steve Ballmer is credited with saying that they shouldn't have gone ahead with the deal.
According to the NBC site announcement the "focus on hard news and original reporting would remain the same" although we know of Microsoft plans to launch a new news service in the Autumn.
The joint venture was considered one of the most profitable news sites in America by "the trade".
It is being viewed as a move by NBC to take out Microsoft and given that they're the buyers, that seems to make sense.
Given too all of the negative publicity regarding Microsoft (as you'll read plenty regrettably, in this blog alone http://streamabout.blogspot.ie/2012/07/vanity-fairs-expose-of-microsoft-and.html), the timing is possibly co-incidental or perhaps, commercial.
It could be a simple matter that NBC don't want to bet on a brand that's diminishing and that makes sense.
It also makes sense that NBC News are gearing up for a better news service following The AOL/Huff Post live announcement and when they're facing one hell of a competitor on August 13 and they want to plan for that.
News gathering is the hottest topic of the moment http://streamabout.blogspot.ie/search/label/rupert%20murdoch as of course is the whole role of citizen journalism http://streamabout.blogspot.ie/2012/07/citizen-journalism-is-spreading.html
It'll be interesting to see how this divorce develops - on both sides - but also how the whole news content online flourishes and how TV particularly suffers. we know the demand for online news has already impacted negatively on traditional TV viewing.
Let's get ready to rumble.
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